Business groups are urging the Government to redistribute billions of pounds of unredeemed coronavirus cash sitting in local authorities’ bank accounts.
The call comes after research revealed that local councils are holding approximately £1.5 billion in unspent small business grants, which will be returned to the Treasury at the end of the month if left unclaimed.
The cash was initially made available to support small businesses affected by Covid-19. This includes the Small Business Grant Fund (SBGF), the Retail, Hospitality and Leisure Grant Fund (RHLGF), and the Local Authority Discretionary Grants Fund.
While around 92 per cent of the £12 billion fund has now been distributed across 900,000 small firms, the Federation of Small Businesses (FSB) is now calling on the Government to ensure that the remaining cash reaches struggling businesses.
The Local Government Association (LGA) has also warned that councils “need more time and flexibility” to ensure they can fully distribute the fund.
Commenting on the figures, FSB National Chair Mike Cherry said: “Many councils have already handed out more than 90 per cent of their Small Business Grants which is good to see, but that means that more money remains which needs to be handed out.
“We want to see this £617m fund issued to councils so that they can help small businesses that may have missed out on initial funding or may not qualify for other grants. This will go some way to helping councils safeguard the future of the local businesses and communities.”
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