East Sussex businesses call on government to release £2.5billion of allocated grants

The fund was set up early in the Covid-19 crisis and has so far helped small businesses based on the rateable value of their premises.

However, more money was allocated than has been claimed, and it is this spare cash that the government is being asked to release as the current rules exclude many small firms and sole traders.

This includes those whose rates are included in their rent, those in shared offices, hairdressers and beauticians who rent chairs in salons, people working in the events and entertainments industry, and many others who do not operate out of a traditional office or retail unit.

There are also many firms whose business rates were just above the threshold set for claims and so received no aid.

As a result of the letter being issued, a petition has been set up by the manager of Hastings Business Improvement District (Love Hastings) to put pressure on government to agree to a wider definition of which types of business would be eligible.

In her letter, Christina Ewbank, from the East Sussex Chamber of Commerce, said: “The Government has stated that (its published) list is not exclusive and local authority discretion should be exercised. We therefore ask that this list be seen as a starting point and that when discretion is exercised it should include the business groups we have detailed.

“We would also like to ask that you use more of the remaining pot from the original Small Business Grant Fund held.”

John Bownas, who published the petition, said: “There is still some £2.5 billion in unused business grants being held by English local authorities. This money is vital to help those who are not covered by existing or proposed funding criteria.

“We call on the government to allow councils to use 100 per cent of their existing allocations to creatively help save and rebuild their local economies. Without this help many hundreds of thousands of small businesses may fail or be stifled.

“This is money that has already been set aside to help save the economy, so no further spending is required.”

A full list of the proposed list of businesses proposed to be made eligible for support can be found on the change.org petition website at http://chng.it/ncDrLNLmSN.