New £5,000 small business grants to adapt businesses following Coronavirus pandemic

The Government will be handing out grants of up to £5,000 to small businesses in tourist destinations to help them adapt following the Coronavirus crisis

fifty pound note

News shared by Jack on behalf of the Ministry of Housing, Communities and Local Government. Ed


Communities that depend on tourism will receive a major boost from a new £10 million ‘Kick-starting Tourism Package’, the Minister for Regional Growth and Local Government Simon Clarke MP has today (Friday 3rd July) announced.

Speaking at the Local Government Association’s annual conference, Minister Clarke confirmed the new funding will be distributed to communities immediately to kick start tourism in time for the summer as part of the Government’s drive to boost the recovery of the economy.

Grants of up to £5,000
The £10m Kick-starting Tourism Package, will give small businesses in tourist destinations grants of up to £5,000 to help them adapt their businesses following the Coronavirus pandemic.

Businesses can use the funding to pay for specialist professional advice such as HR, legal or financial expertise, to adopt new technology and online systems or to purchase new equipment. 100 per cent of the money will come from Government with no obligation for businesses to contribute financially.

Clarke: Kick-starting domestic tourism will be key to economic recovery
Minister for Regional Growth and Local Government, Simon Clarke MP, said:

“When the Prime Minister announced the New Deal, he made it clear that the Government is determined to change the country for the better, uniting and  levelling up our regions.

“Kick-starting domestic tourism will be key to our economic recovery and that is why I am delighted to announce £10 million in new funding for small businesses in tourist destinations, bringing jobs, investment, and financial support to the communities who need it the most.”

Ensuring tourist hot-spots are open for business this summer
Many areas across the country have experienced a significant fall in tourist and visitor numbers in recent months. The initiative will help ensure that tourist hot-spots are firmly open for business this summer.

In his speech at the Local Government Association Conference, the Minister also paid tribute to local leaders and frontline workers for their “tireless efforts” in responding to and tackling Coronavirus. He also confirmed the Government would publish its Devolution White Paper this autumn.

Huddleston: Vital that we help the sector bounce back
Tourism Minister, Nigel Huddleston, said:

“Our tourism sector is hugely important – creating jobs, supporting businesses and driving local economies in villages, towns and cities across the country. It is vital that we help the sector bounce back and give it the platform to recover when it reopens from tomorrow.

“This fund will help many small businesses in tourism destinations and with the infrastructure investment brought forward will provide a further boost for jobs and growth.”

European Regional Development Fund
Today’s funding from the European Regional Development Fund (ERDF) builds on the success of the Government’s £32m ERDF investments in tourism-boosting projects across the country that are providing benefits in local areas now.

Live projects include £1 million to support coastal improvements in Cornwall and £4.2 million to help the Lake District meet its low carbon ambitions.

Minister Clarke has also confirmed that over £50 million ERDF funding for shovel-ready infrastructure projects will now be accelerated and distributed later in the summer and autumn. The funding is for projects already in development which will boost local economies and visitor numbers, create jobs and promote investment.

Image: Images Money under CC BY 2.0

Friday, 3rd July, 2020 10:30am

By

ShortURL: http://wig.ht/2nM1

Filed under: Business, Government, Island-wide, Isle of Wight News, Top story, Tourism

Any views or opinions presented in the comments below must comply with the Commenting 'House Rules' and are solely those of the author and do not represent those of OnTheWight.

Leave your Reply

5 Comments on "New £5,000 small business grants to adapt businesses following Coronavirus pandemic"

newest oldest most voted
fedupbritain
Grants should be replaced by loans with owners on the hook for the amount in the event of default. This would prevent taxpayers money being thrown into the abyss while incentivising proper investment. Grants could simply prolong a business’s inevitable demise while a loan could help them grow and provide long term employment. This system only works if there is an element of risk attached and helps… Read more »
Angela Hewitt

Great idea under normal circumstances and as a business woman of 40 yrs I would agree. These are not normal circumstances.

fedupbritain
The grants come from tax revenue or borrowing. The only way to cover the grants is by raising tax or increasing national debt. In an economic downturn increasing tax will push other businesses and families closer and beyond the edge. By borrowing more the Government is promising, in effect, further tax hikes in the future impeding the rate of recovery. A much better solution would be to… Read more »
Barefoot

Its says the grants come from European Regional Development Fund – like quite a few other grants that businesses have benefitted from thoughout Covid, so maybe not have to directly pay for from taxpayers ?

fedupbritain

On the contrary, the ERFD is made up of taxpayers’ money. As the second largest contributor to the fund the UK taxpayer is similarly giving away free money to other member states.