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Business Local Restrictions Support Grant, Additional Restrictions Grant & National Lockdown Grant Update from Folkestone and Hythe District Council

January 12, 2021 4:11 PM
By Katharine Harvey, Chief Economic Development Officer, F&HDC in Email to Local Businesses
Originally published by Tim Prater | Councillor for Sandgate & West Folkestone, Sandgate Village, Harvey West & Hythe East

Since the start of the previous national lockdown period on 4th November 2020, there have been a number of business grant schemes available for businesses in the district. However, we have tried to keep this as straightforward as possible, so have combined these into two broad schemes - the Local Restrictions Support Grant (LSRG) and the Additional Restrictions Grant (ARG). The recent national lockdown this January has brought an additional grant - the National Lockdown Grant, which is available to businesses eligible for an LSRG.

Local Restrictions Support Grant

The LSRG is available to businesses that are legally required to close during either the national lockdown periods and/or during Tier 3 or Tier 4 restrictions and are in business rated premises. This has therefore been applicable to different types of businesses during these different periods, with some qualifying for an LSRG in all periods and others only eligible during the national lockdowns. The Government has provided information on which types of business are legally required to close, therefore, where it has been possible, our Business Rates team has contacted eligible businesses and invited them to complete the application form on our corporate website.

If you have not been contacted and believe your business was eligible for an LSRG for any period since the 4th November 2020, please contact the business rates team on 01303 853 223

Once an LSRG application has been made for any period and this has been approved (and potentially already paid), further grants will be automatically paid for the period up to the middle of February 2021, when the Government is due to review the current National Lockdown).

Please note: even if your business was/is legally required to close and you are NOT a business rates payer, you will NOT be eligible for an LSRG and should apply for an Additional Restrictions Grant.

The LSRG scheme in Folkestone & Hythe is being administered by the Business Rates Team (business.rates@folkestone-hythe.gov.uk; tel 01303 853223)

Additional Restrictions Grant

This is a discretionary local authority grant scheme which is available to businesses that have been impacted since 4th November 2020 due to the pandemic. If a business is eligible for an LSRG, then it would NOT normally also qualify for an ARG. However, this can be considered on a case by case basis and can be awarded under some circumstances.

The eligibility criteria for the ARG scheme include the need to demonstrate at least a 25% impact on expected income levels and that monthly fixed costs are incurred that equate to at least 30% of the eligible grant award (e.g. for businesses eligible for a £1,334 grant, monthly fixed costs need to be at least around £400).

Where a business has applied for an ARG for the November national lockdown period and this has been approved, then additional pro-rata grant payments have been paid for the period up to 29th December 2020. Additional automatic payments will then be paid on a prorate basis for the period from 30th Dec - 4th Jan and for the six weeks of national lockdown from 5th January 2021. These ARG awards for the January national lockdown period are equivalent to the LSRG and national lockdown grants paid to LSRG eligible businesses.

Businesses eligible for an LSRG during the November lockdown period, but not eligible during Tier 3 or Tier 4 restrictions, can apply for an ARG for these periods.

If you have not yet applied for an ARG for any period since 4th November 2020, you can still apply. The ARG scheme will remain open to new applications until 31 January 2021. However, we would urge you to apply as soon as possible. Please use this weblink to complete an application


The Additional Restrictions Grant scheme in Folkestone & Hythe is being administered by the Economic Development team (economy@folkestone-hythe.gov.uk, 01303 853 287).

National Lockdown Grant

The government has introduced a new National Lockdown Grant for the current national lockdown that commenced 5th January 2021. These grants are available to businesses legally required to close and meet other eligibility criteria. This is payable in addition to an existing LSRG for eligible businesses for this period.

All eligible businesses that have already applied for an LSRG for the November 2020 national lockdown period, will automatically receive this additional grant. Please do not complete another form. Guidance for this scheme will not be received until the week commencing 11 January and payments will be processed following receipt of that.

If your business has not yet applied for an LSRG for the November 2020 national lockdown and is eligible for this grant, please complete an LSRG application using the following link.


Once LSRG applications are approved, this will be followed by further automatic LSRG grant payments for the subsequent tier 3, tier 4 and January 2021 national lockdown period.

Acceptance of grant payments by any business means that they are confirming their eligibility for the grant scheme and, if they are no longer eligible - i.e. you have become insolvent and ceased trading, have opened your business premises to the public and/or exceeded state aid limits, the grant will need to be returned. The Government will not accept deliberate manipulation and fraud - and any business caught falsifying their records to gain additional grant money will face prosecution and any funding issued will be subject to claw back, as may any grants paid in error.