Does my salon qualify for a business rate reduction or any other financial support?
The pandemic has had a devastating impact on many businesses operating in the hair and beauty industry. As the current lockdown restrictions look set to last until at least March, it’s important to understand what relief is open to you and your business to get you through the next few weeks and months.
On January 5th, the Chancellor of the Exchequer, Rishi Sunak announced new lockdown grants for the retail, leisure and hospitality sectors, including the hairdressing industry. This includes a one-off top-up grant of up to £9,000.
These will be granted to any business, which is legally required to close, as follows:
In addition to this latest round of support, closed businesses in England can also apply for a Local Restrictions Support Grant (LRSG) through their council.
As we ease our way out of a national lockdown, this kind of targeted support may be helpful to those business who aren’t able to reopen due to local or regional restrictions.
The support packages are different across the UK, with separate support announced for businesses in Scotland, Wales and Northern Ireland.
In terms of business rates, the Chancellor announced on April 1st that businesses operating in the retail, leisure and hospitality sectors will not have to pay any business rates for the 2020/2021 tax year for 12 months, ending 31st March 2021.
Many are calling for this to be extended further into 2021 to provide some breathing room for struggling businesses. We may hear more on this when the Chancellor announces his budget on 3rd March.
Julie Hunter is a senior associate solicitor specialising in corporate law at Stephensons.
