Omicron Additional Restrictions Grant (ARG)

What is the Omicron Additional Restrictions Grant?

The government has announced that councils will be provided additional funding to help businesses that have been severely impacted by coronavirus restrictions and the rise of the Omicron variant, when most needed. Due to the limited funding received by the council, we regret that this scheme cannot support all businesses. 

Please note: payments of grants are subject to pre-payment checks as prescribed by government. 

This scheme is now closed, payments will be determined and made before 31 March 2022.

Who can claim this funding?

Businesses who meet all of the following criteria are eligible for the grant:

• Businesses listed below that are in the hospitality, leisure and accommodations sectors who are not eligible for the Omicron Hospitality and Leisure Grant (OHLG)
• Business which were trading on 1 October 2021 and are still currently so doing
• Businesses who can demonstrate they have been severely impacted due to Omicron and suffered a loss of income of more than 30 per cent. The 30 per cent reduction must have occurred during December 2021 and be in comparison to trading conditions for a business, during October 2021 and November 2021.
• Businesses must be based in the East Riding of Yorkshire Council area.

Please note: Educational settings do not meet the definition of hospitality, leisure or accommodation businesses. In addition, second homeowners not trading as a business cannot claim a grant of any amount.

Parish and Town councils are not able to receive a grant.

Hospitality

For the purposes of this scheme, a hospitality business can be defined as a business whose main function is to provide a venue for the consumption and sale of food and drink.

For the purposes of this scheme, the definition of a hospitality business will exclude: food kiosks and businesses whose main service (generating 50 per cent or more of income) is a takeaway (not applicable to those that have adapted to offer takeaways during periods of restrictions, in line with previous Covid-19 business grant schemes).

Those businesses involved in the supply chain to the hospitality sector are eligible to apply. Each case will be considered on its own merits.

Leisure

For the purposes of this scheme, a leisure business can be defined as a business that provides opportunities, experiences and facilities, in particular for culture, recreation, entertainment, celebratory events and days and nights out.

For the purposes of this scheme, the definition of a leisure business will exclude: all retail businesses, coach tour operators, tour operators, and gyms and sports businesses where physical exercise or training is conducted on an individual basis or group basis.

Gyms and sports business include dance and fitness studios, sports centres and clubs, sports courts, swimming pools and golf courses. This list is not exhaustive.

Those businesses involved in the supply chain to the leisure sector are eligible to apply. Each case will be considered on its own merits.

Accommodation

For the purposes of this scheme, an accommodation business can be defined as a business whose main lodging provision is used for holiday, travel, or other purposes

For the purpose of this scheme, the definition of accommodation businesses will exclude: private dwellings, education accommodation, residential homes, care homes, residential family centres and beach huts.

Those businesses involved in the supply chain to the accommodation sector are eligible to apply. Each case will be considered on its own merits.

The following table sets out the types of businesses that are eligible under the sector thresholds for this scheme. These examples are indicative, not exhaustive.

Are there any exclusions that apply? 

Any business in the following circumstances will not be eligible for the grant and any business which is eligible for the Omicron Hospitality and Leisure Grant:

• Hospitality - For the purposes of this scheme, the definition of a hospitality business will exclude: food kiosks and businesses whose main service (generating 50 per cent or more of income) is a takeaway (not applicable to those that have adapted to offer takeaways during periods of restrictions, in line with previous Covid-19 business grant schemes).
• Leisure - For the purposes of this scheme, the definition of a leisure business will exclude: all retail businesses, coach tour operators, tour operators, and gyms and sports businesses where physical exercise or training is conducted on an individual basis or group basis.
• Gyms and sports business include dance and fitness studios, sports centres and clubs, sports courts, swimming pools and golf courses. This list is not exhaustive.
• Accommodation - For the purpose of this scheme, the definition of accommodation businesses will exclude: private dwellings, education accommodation, residential homes, care homes, residential family centres  and beach huts. 
• Businesses that have already received grant payments that equal the maximum permitted subsidy allowances (previously known as State Aid) will not be eligible to receive funding.
• Businesses who are eligible for the Omicron Hospitality and Leisure Grant (OHLG)
• Businesses that are in administration, insolvent or where a striking off notice has been made
• ARG funding should not be used as a wage support mechanism, for capital projects that do not provide direct business support
• Schools and educational settings
• Parish and Town Councils

This list is not exhaustive.

How much will I receive?

The amount of ARG Omicron grant will be determined for all eligible businesses that have applied once applications have closed on 6 March 2022.

Businesses will be notified of the value of grant awarded, between 21 March 2022 and 31 March 2022.

Awards will be based on either:

1. the rateable value (RV) that a business has, or if the business has no rateable value
2. the fixed business costs that a business incurs. 
3. businesses with no fixed costs or rateable value will be awarded a set figure, yet to be determined.

Fixed Business costs

Fixed business costs are defined as a business expense which does not vary with production volumes. Fixed costs often include rent, contractual agreements or licences that are needed for the business to operate, which do not change in price if production increases or decreases. Instead, they are bound for the length of the contract or payment schedule. 

Fixed business costs must be directly attributable to the business and must not include payroll costs. The costs of domestic premises are excluded from the definition of fixed business costs, unless that cost is for a mortgage for a Bed and Breakfast premises occupied by the applicant.

The Government has provided limited funds for the Omicron Additional Restrictions Grant. The level of grants to be awarded will be prioritised to those business types that the Council considers a local priority. The Council therefore reserves the right to set the levels of grant available and/or restrict the grant awards to certain types of businesses.

The Council will not award grants where funds are no longer available to do so.

The table below shows the minimum and maximum grant award, based on rateable value or fixed costs. Awards may either be the minimum amount stated, the maximum amount stated, or an amount to be determined in between the minimum and maximum.

Please note: payments will only be made to UK bank accounts. Where a business is a limited company, you MUST provide the bank account details for the company and not provide a personal bank account. Payments will be delayed where personal bank details are provided.

How do I apply for the grant?

Government has asked councils to request that businesses apply for the grant, to check eligibility and provide supporting evidence. Before completing this application form, please have the following items of evidence at hand as you will be required to upload the evidence with your form.

Before completing the application form, please have the following items of evidence available as you will be required to upload the evidence with your form. If you do not provide this evidence we will be unable to process your grant claim. 

We may share this data with the Department for Business, Energy and Industrial Strategy. The BEIS privacy notice, setting out how BEIS will handle personal data across all COVID-19 business grant schemes, can be found here:

GOV.UK - BEIS COVID-19 business support grant schemes: privacy notice (external website)

Please note: This scheme is now closed, payments will be determined and made before 31 March 2022.

Once this information is received, the Council will carry out pre-payment checks prior to issuing payments and upon closure of the grant scheme. Businesses will be notified of the value of grant awarded 21 March 2022 and 31 March 2022.

What is Subsidy Allowance?

The United Kingdom remains bound by its international commitments, including subsidy obligations set out in the Trade and Cooperation Agreement (TCA) with the EU. We have detailed below for reference the types of allowances.

Please note: you must provide any allowances received on the application form and provide any necessary documentation if requested by the council.

Small Amounts of Financial Assistance

Grants may be paid in accordance with Article 364(4) of the TCA, which enables an applicant to receive up to a maximum level of subsidy without engaging Chapter 3 of the TCA. This allowance is up to 325,000 Special Drawing Rights, to a single economic actor over a rolling period of three fiscal years (the “Relevant Period”), which is the equivalent of £335,000 as at 2 March 20211.

COVID-19 Business Grant Allowance

Where the Small Amounts of Financial Assistance Allowance has been reached or an applicant has elected not to receive a grant under this allowance, grants may be paid in compliance with the Principles set out in Article 366 of the TCA and in compliance with Article 364(3) of the TCA under the COVID-19 Business Grant Allowance (subsidies granted on a temporary basis to respond to a national or global economic emergency).

For the purposes of the COVID-19 Business Grant Schemes, this allowance is £1,900,000 per single economic actor. This allowance includes any grants previously received under other COVID-19 Business Grant Schemes using the COVID-19 Business Grant Allowance and any State aid previously received under Section 3.1 of the European Commission’s Temporary Framework across any other UK scheme.

This may be combined with the Small Amounts of Financial Assistance Allowance to equal £2,235,000 (subject to the exact amount applicable under the Small Amounts of Financial Assistance Allowance using the Special Drawing Right calculator, and any other support an applicant has received under the Small Amounts of Financial Assistance Allowance in the Relevant Period). 

COVID-19 Business Grant Special Allowance

Where an applicant has reached its limit under the Small Amounts of Financial Assistance Allowance and COVID-19 Business Grant Allowance, it may be able to access a further allowance of funding under the COVID-19 Business Grant Schemes of up to £10,000,000 per single economic actor, provided the following conditions are met: 

• a. The Special Allowance covers only the applicant’s uncovered fixed costs incurred during the period between 1 March 2020 and the date of application, including such costs incurred in any part of that period ('eligible period')
• b. Applicants must demonstrate a decline in turnover during the eligible period of at least 30 per cent compared to the same period in 2019. The calculation of losses will be based on audited accounts or official statutory accounts filed at Companies House, or approved accounts submitted to HMRC which includes information on the applicant’s profit and loss
• c. ‘Uncovered fixed costs’ means fixed costs not otherwise covered by profit, insurance or other subsidies
• d. The grant payment must not exceed 70 per cent of the applicant’s uncovered fixed costs, except for micro and small enterprises (for the purposes of this scheme defined as less than 50 employees and less than £9,000,000 of annual turnover and/or annual balance sheet), where the grant payment must not exceed 90 per cent of the uncovered fixed costs
• e. Grant payments under this allowance must not exceed £10,000,000 per single economic actor. This allowance includes any subsidies previously received in accordance with Section 3.12 of the European Commission’s Temporary Framework or previously received under the COVID-19 Business Grant Schemes using this COVID-19 Business Grant Special Allowance; all figures used must be gross, that is, before any deduction of tax or other charge
• f. Grants provided under this allowance shall not be cumulated with other subsidies for the same costs.

 For the avoidance of doubt, grants under the Small Amounts of Financial Assistance Allowance, the COVID-19 Business Grant Allowance and the COVID19 Business Grant Special Allowance may be combined for a potential total allowance of £12,235,000 (taking into account all grants previously received under the COVID-19 business grants schemes and subject to the exact amount applicable under the Small Amounts of Financial Assistance Allowance using the Special Drawing Right calculator and the three fiscal year period applicable to the Small Amounts of Financial Assistance Allowance).