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COVID-19 business support: Additional Restrictions Grant


As part of the Government support package for businesses South Tyneside Council received £4,360,736 funds under the Additional Restrictions Grant (ARG). This has now all been allocated.

How this funding was used

South Tyneside Council initially used part of Additional Restrictions Grant resources to enable more businesses to access the Local Restrictions Support Grant. This included businesses in the hospitality, leisure and accommodation sectors that had suffered reduced demand due to enhanced local restrictions. It also supported wholesale and business to business suppliers to the hospitality, leisure and accommodation sectors occupying commercial premises in South Tyneside.

In March 2021 a business hardship grant was set up to help assist those small businesses who had fallen outside the scope for funding from Central Government's Covid-19 financial support schemes.

A one-off cash injection of £5000 was provided to small firms that had been significantly impacted by the coronavirus restrictions and could demonstrate hardship.

In April 2021, South Tyneside Council extended the Hardship grant to businesses providing in person face-to-face services who had received other covid related support but were still mandated to closed. This included driving instructors, mobile hairdressers and beauticians.

Additional payments to sectors still subjected to restrictions were made in May 2021. This included the hospitality sector (hotels, restaurants, pubs and nightclubs); hotels and bed and breakfasts; and event businesses where the main activity was organising, delivering and managing events. Three tiers of payments were made depending on the businesses rateable value, in-line with previous covid grant schemes.

South Tyneside Council has continued to listen to, and respond to, the needs of local businesses during these difficult times. Due to the limited resource available, we have had to make difficult decisions about how to prioritise and allocate the funding.

Unfortunately, the Council has not been able to support every business that contacted us given the financial constraints, however we have delivered these grant schemes as quickly as possible to those organisations within the criteria.

Update (July 2021)

In July 2021, South Tyneside was allocated a top-up to its Additional Restrictions Grant (ARG) Allocation of £665,264 by Government.

The majority of this funding has been used to support hospitality, hotel/B&B, event and theatre businesses affected by the delay to Step 4 of the roadmap out of restrictions until 19 July 2021.

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