Council distributes over £20 million to Hastings businesses as funding schemes come to an end

Hastings Borough Council has distributed a total of £20.1 million to businesses across Hastings and St Leonards as part of the small business and the retail, hospitality and leisure grant schemes which closed for applications last Friday (28 August).

These schemes were created by the Government earlier this year in order to support smaller businesses with fixed premises costs throughout the COVID-19 pandemic.

This funding has helped support approximately 1,737 businesses across the borough.

Councillor Peter Chowney, lead cabinet member for Financial Management and Estates said,

"We have distributed funding amounting to 89% of the £22.5 million we estimated (if every business applied and met all of the government's eligibility criteria) to be payable to Hastings businesses through these schemes. 

"The Government suggested we would have a total of £27.8 million payable, which certainly isn't the case. We still do not know how the government calculated this figure, but we want to assure residents that we did all we could to distribute this funding, under the rules for the scheme laid down by government.

"The council worked really hard to ensure eligible businesses applied. We chased up those which hadn't, to urge them to do so. Local councillors also tried to make contact, and council officers visited the premises where all else failed. It became clear that some of the businesses on the council's register were no longer trading, were not trading on the due date, or had applied elsewhere in the country and exceeded the permitted EU grant aid rules. 

"We also operated a discretionary business grant scheme, which was based on our own local criteria, enabling us to pay out 99.999% of the funding available. Through this scheme we were able to help a further 114 businesses, taking the total paid out to over £21.3 million to 1,851 businesses since the beginning of April 2020.

"Our officers worked incredibly hard to process this funding and I also want to thank local business organisations and councillors who helped us with getting the word out and contacting eligible businesses. 

"Most Hastings businesses are once again open and thriving, and whilst many were not eligible for help under the scheme, we're glad that we were able to support so many of our local businesses whilst they were unable to open their doors.

"However, the council was allocated £6.5 million in government funding for local businesses that we weren't able to allocate under the government's own rules for the small business and retail, hospitality and leisure grant schemes. I would strongly urge the government to allow us to transfer that money to our local discretionary scheme so we can allocate it to local businesses, many of whom are still struggling to survive."