Why Are The Government Grants Not Getting To Businesses?

Many businesses have been left wondering why the government support hasn’t been offered to them yet by their local authority?

This has led to local authorities across the country being bombarded with demands for more clarity on where the support is, and why it hasn’t made its way down to businesses yet.

Finally, we’re starting to get an insight into the situation a little better….

The Government’s Story

The government has said that a whopping £4.6 billion has been paid out to local authorities in the form of Covid-19 grants.

They have then instructed these local authorities to distribute this support to their local areas, and support small businesses who are in need.

This is why businesses have been complaining – the government statements are very clear: this support already sits with local authorities…. It’s now up to them to distribute it.

The support had been revealed back in October, during the second national lockdown. However, we are now approaching 5 months since this announcement – and some businesses still haven’t seen any of the support.

The Local Authorities Side Of Things…

However, local authorities are pushing back, arguing that the government still hasn’t released all of the support it promised to them.

This has meant that local authorities can’t distribute the support correctly, as there simply isn’t enough to go around.

This is largely to do with the government not releasing the support, but also the ongoing aid that is very much ‘in demand’. More businesses are being forced to close during the current lockdown.

The councils say that they are working on getting big amounts of support out for those suffering currently (in 2021), rather than those who had expected grants in the latter months of 2020.

Who Is Telling The Truth?

So… where does the blame lie? With the government or local authorities?

It’s hard to tell…. Both stories might have an element of truth to them.

It’s important to know that this problem is not the case for every local council, some are operating at a fast pace in getting the support out, whereas others aren’t.

This information has led people to assume that local authorities do indeed have the funding, but perhaps are unwilling to make mistakes with the way it is distributed.

Either way, some extra pressure to your local authority wouldn’t go amiss if you are expecting a government support grant.

The worst that can happen is the pressure moves upwards towards the government – forcing them to release any support it may (or may not) have.

Businesses Are Losing Out

Businesses know that they need all of the support as quickly as possible. Many are waiting for grants that they argue might not make it to them in time.

Other owners are struggling to prepare – having been promised £1,000’s in support back in December, yet are still waiting for it in February.

Businesses are losing out, yet it seems like at the moment, they are the ones who are having to do the chasing for the support they need.


Get More Business Blogs Like This

Like Us On Facebook  |  Follow Us On Twitter | Services

Interested In Our Accountancy, Tax, Bookkeeping & Payroll Services?

Get In Touch Below