Sheffield 'lagging behind' on business support grants 'and could miss out on future funds'

Ten weeks into the coronavirus lockdown, small and medium-sized businesses in Sheffield are missing out on millions of pounds from the Government due to the council’s ‘sluggish’ approach, the Lib Dems say.

Their figures show Sheffield is the worst performer in Yorkshire and the Humber, distributing 74 per cent of monies, compared to top of the table York on 97 per cent.

Rotherham and Doncaster have handed out 78 per cent, while Barnsley is on 84 per cent.

Sheffield’s allocation was the third largest in the region, with £113m. Some 9,334 businesses are eligible for grants and 6,968 have shared £83.1m, the Lib Dem figures show.

Sheffield City Council said last week £86m has been paid to 6,994 businesses.

This week, small business minister Paul Scully confirmed the £83m figure and said £30m was unclaimed.

Now the Lib Dems are urging council chiefs to catch up with their neighbours to avoid missing out on further grants in coming weeks.

Lib Dem leader Coun Shaffaq Mohammed said Sheffield was ‘lagging behind’ and need to do ‘much better’.

He addedd: “Our businesses will drive our post-Covid19 recovery, and this support could be the difference between survival or collapse for many small companies.

“What’s more, we’re hearing the Government might offer an additional grant to top-performing councils - and I’d hate to see local firms miss out on additional support just because our council couldn’t act quickly enough.

“The lacklustre approach taken by Sheffield Council’s Labour leadership on this issue is yet another example of Labour’s indifference towards our city’s business community. Businesses and their staff need a council which is passionate about growing our economy and helping local firms thrive – not the hands-off approach which we’re seeing under Julie Dore.”

Coun Mazher Iqbal, cabinet member for business at Sheffield City Council, said last week: “The council is working hard to process applications from businesses as quickly as possible and has so far paid £86m to 6,994 businesses in Sheffield – 96 per cent of those who have applied.

“However we know there are still some eligible businesses who haven’t yet accessed this funding. I’d like to encourage business owners who think they may be eligible to apply online on our website or to get in touch with us.”

Small Business Minister Paul Scully said they were “really keen to get grant funding out” after cash was unclaimed.

The government fears publicity around financial support for companies hit by lockdown has not reached everyone and has mounted a push to get the word out.

It is giving grants to small businesses receiving rates relief and retail, hospitality and leisure firms with a rateable value below £51,000.

It has also given Sheffield City Council money to set up a Local Authority Discretionary Fund for firms that have fallen through the cracks.

Other government support includes CBILS and Bounce Back loans, furlough and business rates and VAT holidays.

Go to https://www.gov.uk/coronavirus/business-support Call 0114 224 5000 or email [email protected]

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