Ringfence local funding, says BBPA

Ringfence local funding, says BBPA

The British Beer & Pub Association (BBPA) has backed calls from the Local Government Association to ringfence £1bn in grant funding to continue to help support pubs and other businesses severely affected by lockdown.

According to the Local Government Association, the government has written to councils to say it will shut three funding schemes – the Small Business Grants Fund; Retail, Hospitality and Leisure Business Grants Fund; and the Discretionary Grants Fund – on 28 August, with any unclaimed funds returning to the government. It estimates that over £1bn in grant scheme funding will be lost.

The BBPA is backing the Local Government Association’s call for government to keep funding available so councils can redistribute any unspent resources to reinvest and support businesses and local economies through this crisis.

According to the BBPA, such a measure would enable councils to continue supporting pubs and other businesses severely damaged by the lockdown, particularly those such as pubs with a rateable value above £51,000, who were not eligible for the Retail, Hospitality and Leisure Business Grants Fund.

“Our sector may have reopened, but it is far from out the woods yet,” says Emma McClarkin, chief executive of the BBPA. “Our pubs still need all the support they can get and many are still waiting on it, so withdrawing £1bn in possible funding is short-sighted to say the least.

“The government should be focused on supporting business like pubs that can help the economies of local communities grow, not withdrawing vital funding at a time businesses across the UK need it most.

“Some 10,000 pubs were unable to benefit from the Retail, Hospitality and Leisure Business Grants Fund, as their business rates were too high. Rather than clawing back this money, it’s a no brainer to use it to help those businesses that have either fallen through the cracks or are continuing to struggle.”