Hundreds of Dacorum businesses yet to receive grants

Hundreds of Dacorum businesses have not received cash as part of a scheme to help them stay afloat during the Covid-19 pandemic, figures reveal.

Business groups are urging councils to act swiftly to stop companies from going under and those they employ from losing their jobs.

In March, the Chancellor Rishi Sunak announced grants of between £10,000 and £25,000 for small and medium-sized businesses to support them during the coronavirus crisis.

Dacorum Borough Council was yet to pay 854 business properties flagged as qualifying for help by April 19, the latest Department for Business, Energy and Industrial Strategy figures show.

However, 58% of the 2,039 properties earmarked had been sent grants – above the national average of 50%.

Firms in the area have received £16.2 million so far, from an allocated pot of £26.3 million.

The Federation of Small Businesses praised the councils that are getting money into the hands of firms quickly.

The British Beer and Pub Association warned pubs and other hospitality businesses could be among the last to see restrictions relaxed, making support even more critical.

Chief executive Emma McClarkin said councils that are lagging behind need to learn lessons from the best performers, and get help to businesses “as a matter of urgency”.

She added: “Otherwise, pubs will close for good and the thousands of people they employ will lose jobs.”

The government support takes two forms. The Small Business Grants Fund is worth £10,000 and available to those who ordinarily also qualify for relief on their business rates due to their small size.

The Retail, Hospitality and Leisure Business Grants Fund is open to those which would have qualified for a 100% reduction in business rates under the previously announced Expanded Retail Discount scheme as of March 11.

Grants are provided for a business property so firms with multiple outlets can receive more than one payment.

Dacorum Borough Council has wrote to all businesses that are eligible to apply for a grant as part of the government's business support package.

A spokesperson for the council said: "We are working to support our local businesses during this difficult time.

"So far we have paid 1,479 businesses a total of £20.2m in grants. Around 25% of eligible businesses have not yet responded to our letter and further correspondence attempts.

"We are continuing to contact these outstanding businesses. If you are one of these businesses, please check your letter for details of how to apply for your grant.

"For further information about grants, and other sources of support and advice for businesses please see: www.dacorum.gov.uk/home/business/business-rates/business-rates-relief."

Business Secretary Alok Sharma said: “I am very grateful to local authorities who have been working flat out to ensure these vital funds get to hard-pressed small business owners.

“Government is doing everything we can to support individual councils and help ensure that these grants reach local firms as soon as possible.

“I urge everyone to keep working at pace to get the money where it is needed quickly.”