An estimated 69,543 SMEs that are eligible for emergency funds are yet to sign up for the government's emergency grant
Analysis from money.co.uk reveals that the government has distributed almost one million (889,809) small to medium-sized businesses in England emergency grants through the coronavirus pandemic.
However, ahead of the deadline this Friday 28 August, the consumer finance experts reveal that £1.5 billion worth of grants have gone unclaimed. Within this figure, 69,543 SMEs that the government initially accounted for when estimating which businesses are in scope to receive a grant, are yet to claim.
The emergency grants were announced 17 March, to help provide cash flow to small to medium-sized businesses throughout the coronavirus pandemic.
Earlier in August, the government revealed that 10.8 billion had been paid out to businesses, highlighting that a significant chunk had gone unclaimed. However, money.co.uk can reveal that since then, just 6,889 SMEs have signed for the grant.
While many are urging for the deadline to be extended, the government told councils that the deadline is to remain the same, and unclaimed funds will be returned.
The 20 Local Authorities that have the most unclaimed business grants
Analysis from money.co.uk reveals that the government has distributed almost one million (889,809) small to medium-sized businesses in England emergency grants* through the coronavirus pandemic.
However, ahead of the deadline this Friday 28 August, the consumer finance experts reveal that £1.5 billion worth of grants have gone unclaimed.
Within this figure, 69,543 SMEs that the government initially accounted for when estimating which businesses are in scope to receive a grant, are yet to claim.
The emergency grants were announced 17 March, to help provide cash flow to small to medium-sized businesses throughout the coronavirus pandemic.
Earlier in August, the government revealed that 10.8 billion had been paid out to businesses, highlighting that a significant chunk had gone unclaimed. However, money.co.uk can reveal that since then, just 6,889 SMEs have signed for the grant.
While many are urging for the deadline to be extended, the government told councils that the deadline is to remain the same, and unclaimed funds will be returned.
The Local Authorities that have underestimated grant funding
There are overall 28 Local Authorities that have so far paid out more money in grant funding than initially accounted for. Fourteen of which have been underestimated by over a million.
In total, these councils have underestimated grant funding by over £61 million so far.
Within the list, 26 of the councils have paid out grants that are higher than the country average. Therefore, it is possible that councils in such areas underestimated just how much each grant was worth.
However, despite overspending, it is great to see that out of the 5,537 businesses accounted for initially by Westminster City Council, all of them have in fact claimed and received an emergency business grant.
The 20 Local Authorities providing the highest value grants
On average, each grant provided by the English councils is £12,269. Out of all areas of England, the London Borough of Camden has given out the most money per grant, providing SMEs with an estimated £18,852 per grant. This is closely followed by Royal Borough of Kensington and Chelsea (£18,740) and Westminster Council (£17,615).
Out of the list of 20, three quarters (75%) of Local Authorities paying out the most per grant are based in London.
On the other end of the scale, Hyndburn Borough Council (£10,360), Forest of Dean District Council (£10,722) and Rossendale Borough Council (£10,740) are paying out the lowest value per grant.
The 20 Local Authorities that have paid out the most money in grants
While Cornwall Council has the highest number of eligible businesses yet to receive a grant, they have in fact paid out the greatest amount of emergency funds (£236,670,000). This is followed by Birmingham City Council (£210,110,000) and Leeds City Council (£153,765,000).
On the other hand, the Council of the Isles of Scilly (£4,075,000), Oadby and Wigston Borough Council (£11,630) and Epsom & Ewell Borough Council (£9,945,000) have provided the lowest amount of grant payments across England.
Salman Haqqi, personal finance expert at money.co.uk says: “Back in March, the chancellor announced a whole host of emergency measures to try and protect the economy from the impact of the COVID-19 pandemic. This included the Small Business Grants Fund (SBGF) scheme and Retail, Hospitality and Leisure Business Grants Fund (RHLGF), both of which end on Friday.
“With the deadline for grant applications fast approaching, it is imperative that businesses that need support and are yet to claim, assess their financial situation and if needed submit their claim urgently.
“While there has been much confusion in the past with regards to eligibility, now is the last opportunity for businesses to find out if they are eligible and how much funding they could apply for. With this in mind, we have pulled together a coronavirus business guide to help business owners understand what support they are eligible for.”
