New COVID-19 support scheme announced for firms in Northern Ireland

The new Localised Restrictions Support Scheme, already in place in Derry City and Strabane, will be rolled out to all 11 council areas from 19th October.

The £35 million scheme will apply to businesses, subject to eligibility criteria, including:

• Cafes, pubs and restaurants which have been temporarily made to close or limit their services to a takeaway, delivery or outdoor service.
• Hotels and guesthouses which have been temporarily forced to limit the provision of services for residents only
• Other businesses which, under the Health Protection Regulations are required to cease to carry that business or to provide that service, including cinemas, museums, galleries, trampoline parks, inflatable parks, escape rooms, bowling alleys, ice rinks and close contact services operating in commercial premises (e.g. hairdressers and barbers, beauty salons, day spas, nail bars and tattoo parlours)

Small firms eligible for the support will receive £1,600 for the initial two week period, and then £800 for each subsequent week that restrictions apply for.  Medium and Large businesses will receive £2,400 and £3,200 respectively for the initial two weeks, followed by £1,200 and £1,600 respectively for each relevant week after that.

The thresholds are:

Small business

• A business who is a sole occupant operating from a property with a Net Annual Value (NAV) of £15,000 or less,
• certain guesthouses
• A business who is a joint occupant of a property with any NAV.

Medium business

• A business who is the sole occupant of a property with an NAV between £15,001 and £51,000.

Large business

• A business who is the sole occupant of a property with an NAV of £51,001 or more

The Localised Restrictions Support Scheme will only be open to businesses that have been required to close or have had business activities at their premises directly limited by the Health Protection (Coronavirus, Restrictions) (No.2) Regulations (Northern Ireland) 2020.

The Localised Restrictions Support Scheme opened for applications in Derry City and Strabane on 14th October, as hospitality businesses have been under additional restrictions since 5th October so the update in payments will be backdated.

Finance Minister Conor Murphy said the scheme would not resolve the matter long-term, but would provide “immediate support”.

Some businesses will also be able to continue to access the UK Government's furlough scheme until it ends on 31st October and its replacement, the Job Support Scheme which starts on 1st November.

Date published 16 Oct 2020