MAUFACTURING firms are among the biggest winners after Finance Minister Conor Murphy confirmed Stormont will exhaust the remainder of its 2020/21 Covid-19 funding pot on three new businesses support schemes.
Around £178 million will be allocated to an estimated 19,600 businesses in the coming weeks and months, with many town and city centre traders also set to benefit.
Conor Murphy said the move was part of a contingency plan initiated due to a lack of bids from other Stormont departments, ensuring unspent funds would not be handed back to the Treasury in London at the end of March.
Largely targeted at businesses which have missed out on other key grant support schemes rolled out over the past year, it includes a £50,000 grant for larger businesses, £25,000 for medium-sized manufacturers and two ‘top-up’ payments of £10,000 and £5,000 for firms which received grants in the first lockdown, but nothing since.
Businesses with a rateable value above £51,000 that missed out on a grant in the first lockdown, and are now eligible for the 12-month rates holiday, will be in line for the £50,000 payout.
It’s anticipated around 1,125 businesses will be able to apply, with restrictions on one payment per business. In all, it’s expected to pay out around £56.3m.
It will go to shops, car showrooms, garden centres, gyms and fitness suites, equestrian centres, and caravan parks, but larger food stores will be omitted.
Businesses in receipt of the Localised Restriction Support Scheme (LRSS) are not barred from the payment. But firms benefitting from other large grants, such as the Department for the Economy’s large tourism and hospitality grant will be ruled out.
The £25,000 for manufacturers will be automatically paid to 1,106 firms in premises with a rateable value of between £15,001 and £51,000 at a cost of £27.9m.
The third scheme will pay £10,000 to businesses that received the £25,000 grant for retail, hospitality, tourism and leisure in the first lockdown, but have had nothing since.
Around 1,600 businesses are believed to be in line for the automatic grant.
A £5,000 grant will also be automatically paid to businesses in smaller premises, which received the £10,000 small business grant in the first lockdown, but have been unable to get any other financial support.
Around 16,000 businesses are in line for the £5,000 payment, including essential retailers and takeaways still allowed to open under the health regulations.
The broad spectrum of beneficiaries will include small manufacturers, hardware stores, bakeries, pharmacies, building suppliers, delis, accountants, solicitors, dentists and physiotherapists.
Retail NI’s chief executive, Glyn Roberts welcomed the inclusion of support for essential retailers in town and city centres.
He said while they have been permitted to trade, high street stores had been badly hit by the loss of footfall.
“Minister Murphy listened to our concerns and responded with this grant scheme to support those businesses,” he said.
“The ‘lost footfall’ grant scheme will secure hundreds of jobs and ensure these independent retailers can continue to provide food and other important products to local communities.”
Belfast Chamber’s chief executive Simon Hamilton also welcomed the support for city centre businesses.
He said the £50,000 grant for businesses with a high rateable value will of be of “huge benefit” in Belfast, where rate values tend to be higher.
“This package of support is a welcome acknowledgement of the distress and difficulties businesses face as they struggle to stay alive and continue to employ people and will give businesses in Belfast and right across the region a much needed boost as they wait to be allowed to open their doors again,” he said.
Manufacturing NI said the announcement represents a great relief to many firms.
“Starting a business in manufacturing is tougher and more costly than most other sectors. If we lost these businesses now, we would have lost them likely forever,” said the industry body.
“On top of the business rates holiday for 2021/22 for all manufacturers, the top-up for micro-manufacturers and potential grants for larger firms, there is no doubt that business and jobs have been saved today.”
Colin Neill of Hospitality Ulster said the grants would direct vital funding to those who have not been supported to date or fallen between the gaps.
The Department of Finance said it would now bring forward the regulations needed to make the payments.
“Land & Property Service within my department has again stepped up to deliver much needed support to businesses,” said Conor Murphy.
“These grant schemes, together with the 12 month rates holiday, will provide a lifeline for many businesses who continue to confront the challenges of Covid-19.
“This package of support will help businesses and safeguard jobs through the period ahead as we emerge from the current restrictions.”
