Local Authority Discretionary Grant Fund

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Discretionary Grant Fund – first round is now closed

The first round of applications is now closed while we assess all submissions against the criteria. We aim to contact all successful applicants and process payments for eligible businesses within 10 days commencing Monday, 6 July 2020. Please be advised that a significant number of submissions did not meet the Government’s eligibility criteria.

We will communicate through our social media and business e-newsletter should we open a round two for businesses.

Businesses which are eligible for the Small Business grant and the Retail, Hospitality and Leisure grant, are not eligible to apply for a Discretionary Fund grant. If you have already obtained a business grant, all your details we will cross reference and you should not apply for this scheme.

The purpose of the scheme is to support small businesses (SMEs) and to encourage growth and re-employment as the ‘lock-down’ measures are eased. The scheme is now open from Wednesday 24 June to Friday 3 July 2020.

Please note that businesses who have applied for the Coronavirus Job Retention Scheme and Self-employment Income Support Scheme are eligible to apply.

Please note that grant income received by a business is taxable, although only businesses which make an overall profit once grant income is included will be subject to tax.

Which businesses are eligible?

According to the Government's eligibility criteria you are eligible if:

  • Registered in Southampton with ongoing fixed property-related costs
  • Demonstrable fall in income due to the COVID-19 crisis
  • Only businesses which were trading on 11 March 2020 are eligible
  • Businesses which occupy a commercial property, or part of a commercial property, with a rateable value, annual rent, licence or mortgage value below £51,000

Additionally, businesses must satisfy two or more of the following requirements:

  • Small and micro businesses with a headcount of staff of less than 50
  • Small and micro businesses with Balance sheet total: Not more than £5.1 million
  • Small and micro businesses with Turnover: Not more than £10.2 million

The Government has asked local authorities to prioritise the following businesses for grants and to determine the value of grant payment:

  • Small businesses in shared offices spaces, other flexible workspaces and incubators which do not have their own business rates assessment
  • Regular market traders with fixed property costs, such as rent or pitch fees, who do not have their own business rates assessment
  • Bed and Breakfasts which pay Council Tax instead of business rates
  • Charity properties in receipt of charitable business rates relief which would otherwise have been eligible for Small Business Rates Relief

Southampton City Council’s Discretionary Grant Policy

How much is the grant worth?

If the fund is oversubscribed then Southampton City Council reserves the right to amend the grant levels downward, on a pro-rata basis, to enable as many grants to be paid as possible to eligible businesses and ensure the fund remains in budget.

A £5,000, £7,500 or a £10,000 grant will be available, determined by your turnover, the number of employees and your fixed property costs.

Regular Market Traders £1000 per market pitch

Regular market traders must have a licence and trading in Southampton for at least six months prior to 11 March 2020.

Bed and Breakfast accommodation

The value of the grant for B&B accommodation paying Council Tax is £5,000 and will need to be evidenced including monthly rent or a monthly commercial mortgage cost below £4,250.

What do I do next?

If you believe you are eligible for the grant, please fill in the form below now so that any payments you receive can be paid promptly by BACS.

If you do not fill in all of the necessary sections of the form, we cannot determine your eligibility and the assessment of your application will be delayed or deemed ineligible.