Business grants for the second lockdown

Many businesses are being forced to close from 5 November, in line with the second lockdown announced for England.

The Local Restrictions Support Grant (LRSG), which was originally introduced for tier three lockdown areas, is now available for any business required to close due to national measures. The grant will be based on business rates, similar to the Retail, Hospitality and Leisure Grant Fund from the first lockdown.


Businesses are eligible for the LRSG if they meet the following criteria:

  • Occupies property on which it pays business rates
  • Has been required to close because of the formal publication of restrictions guidance that resulted in a first full day of closure on or after 9 September. This funding is not retrospective
  • Has been required to close for at least 3 weeks because of the lockdown
  • Has been unable to provide its usual in-person customer service from its premises e.g. non-essential retail, cafes or restaurants that provide a takeaway only service

The Local Restrictions Support Grant counts towards state aid.

Businesses required to close in England due to restrictions will be eligible for the following:

  • For properties with a rateable value of £15k or under, grants to be £1,334 per month, or £667 per two weeks;
  • For properties with a rateable value of between £15k-£51k grants to be £2,000 per month, or £1,000 per two weeks;
  • For properties with a rateable value of £51k or over grants to be £3,000 per month, or £1,500 per two weeks.

Grants are based on the rateable value of the property on the first full day of restrictions and will be extended to cover each additional 3-week period.


Certain businesses are not eligible to apply for the LRSG:

  • Businesses which do not depend on providing direct in-person services from their premises and can continue to operate during the lockdown
  • Businesses that have chosen to close when they are not required
  • Businesses that are still subject to previous closures such as nightclubs
  • Businesses that have reached the state aid limit

Local council funding

Businesses may be eligible for funding at the discretion of their local council if they meet the following:

  • They are required to close but do not pay business rates
  • They are not required to close but are severely impacted

Applications for funding need to be made via local councils:

We will update this blog as further details are released.

For further information or advice on funding for your business, contact our team of specialists on 01903 234094.