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1 May 2020

Government sets up Discretionary Grants Fund to support some small businesses previously outside the scope of other schemes

Introduced by

Ministry of Housing, Communities and Local Government, Department for Business, Energy & Industrial Strategy

Targeted at

Small businesses


Announced on 2 May 2020, exact amounts for local authorities to be confirmed following week. Guidance for local authorities published on 13 May

Stated aims

To support certain small businesses outside the scope of other schemes


This is the announcement that up to £617m is to be made available to local authorities in England via an additional fund - the Local Authority Discretionary Grants Fund. The grants are for small businesses which can show that they have seen a significant drop of income due to COVID-19 restriction measures. There are three levels of grant payments: £25,000, £10,000 or any amount under £10,000. Local authorities will be given guidance on businesses to prioritise, but 'may choose to make payments to other businesses based on local economic need'. Local authorities will have discretion to make payments of any amount under £10,000. Further guidance published on 13 May 2020.


Gov.uk news story

Guidance for local authorities

Gov.uk guidance – Local Authority Discretionary Grants Fund