Local Restrictions Support Grants (LRSG), Additional Restrictions Grant (ARG), Christmas Support Payment (CSP) for wet-led pubs: guidance for local authorities
This is guidance for local authorities on paying grants to support businesses during national lockdown periods and periods of local restrictions.
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Details
These schemes, all delivered through local authorities, are to support local businesses during the national lockdown periods and periods of local restrictions. The guidance is for use by local authorities and sets out the eligibility criteria, operation and delivery details for each strand of the schemes.
Support for businesses during the national lockdown period starting 5 January 2021
The national lockdown that started on 5 January 2021 requires businesses to close in order to manage the spread of coronavirus and save lives. Businesses in other sectors that aren’t required to close will also be affected by the lockdown.
Two of the funds, the LRSG (Closed) Addendum and the Additional Restrictions Grant, plus the one-off Closed Businesses Lockdown Payment, are available to support businesses throughout this period of national restrictions:
Business support package for the January 2021 lockdown
This provides further information on the support available during this period of national lockdown.
Other support for businesses during national lockdowns
Local Restrictions Support Grant (Closed) Addendum: applicable 5 November to 2 December 2020
Businesses required to close due to national lockdown restrictions will receive grants of up to £3,000 per 28-day period under the LRSG (Closed) Addendum, an extension of the LRSG (Closed) scheme.
Additional Restrictions Grant (ARG)
The Additional Restrictions Grant (ARG) provides additional funding for local authorities subject to national lockdown or Tier 3 restrictions, to support businesses that have had their trade affected by the restrictions. This includes:
- closed businesses that don’t pay business rates
- businesses that have not been required to close, but are still severely impacted
Each local authority has the discretion to establish business grant schemes or other business support as best fits their area.
Support for businesses during periods of local restrictions
Local Restrictions Support Grant (Closed)
LRSG (Closed) provides grants to businesses in the highest band of local restrictions - Tier 3 - which have been required to close during periods of local restrictions.
There are 2 versions of this guidance depending on which period the funding application relates to:
- LRSG (Closed) Version 2: applicable from 2 December 2020 onwards
- LRSG (Closed): applicable from 9 September to 5 November 2020
Funding of up to £3,000 per 28-day period is available. During the period of national restrictions this grant is superseded by Local Restrictions Support Grant (Closed) Addendum.
Local Restrictions Support Grant (Closed) Addendum: Tier 4
LRSG (Closed) Addendum: Tier 4 provides grants to businesses in the highest band of local restrictions - Tier 4 - which have been required to close during periods of local restrictions.
Local Restrictions Support Grant (Open)
Where local authorities have been subject to Tier 2 or Tier 3 restrictions, this grant allows local authorities to make discretionary payments to support businesses that were impacted by the restrictions, but not required to close.
There are 2 versions of this guidance depending on which period the funding application relates to:
- LRSG (Open) Version 2: applicable from 2 December 2020 onwards
- LRSG (Open): applicable from 1 August to 5 November 2020
Local Restrictions Support Grant (Sector)
LRSG (Sector) provides grants of up to £3,000 per 28-day period to be made to businesses like nightclubs that were required to close on a national basis since 23 March 2020. It is possible that, as part of future efforts to control the spread of coronavirus, further business property types are closed on an England-wide basis. If so, these businesses will also be eligible for these grants once they have been closed for 14 days.
The LRSG (Sector) scheme is effective from 1 November 2020.
Christmas Support Payment for wet-led pubs
The Christmas Support Payment grant provides funding for local authorities subject to Tier 2 or Tier 3 restrictions in December 2020 to pay one-off grants of £1,000 to wet-led pubs. These are pubs that predominantly serve alcohol rather than provide food and have been severely impacted over the festive season due to temporary local restrictions.
Last updated
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All guidance documents updated: closing dates added; subsidy allowance guidelines amended; requirement for a business to have been trading before restrictions were announced in order to be eligible for funding has been clarified.
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Guidance document 'Business support package for January 2021 lockdown' updated with details of the next payment cycle covering the period 16 February to 31 March.
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The deadline for applications for the Christmas Support Payment for wet pubs has been extended to 28 February 2021.
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Business support package for the January 2021 lockdown: guidance for local authorities added.
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LRSG (Closed) Addendum: Tier 4 - applicable 19 December 2020 onwards published.
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Guidance amended to reflect UK’s updated state aid agreement with the EU Commission. First LRSG (Open) dates changed to cover 1 August to 5 November 2020.
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LRSG (Open) Version 2: applicable from 2 December 2020 onwards - guidance for local authorities published.
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Christmas Support Payment for wet-led pubs: guidance for local authorities added.
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Guidance on 'Local Restrictions Support Grant (Closed): applicable from 2 December 2020 onwards' added.
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Local Restrictions Support Grant strands and the Additional Restrictions Grant explained.
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First published.
Update history
2025-07-23 16:31
The guidance and annex templates have been updated to reflect changes to the debt recovery process for local authorities. Updates include revised recovery requirements, removal of outdated fraud reporting information, updated contact details, and changes to the data protection section.
2023-01-19 14:54
Debt recovery guidance updated: process clarified (but no changes), templates updated following feedback from local authorities. Annexes A and B templates are now available as Excel / Word documents.
2022-04-06 12:45
Assurance guidance updated to reflect the correct minimum assurance criteria for the LRSG (Open) scheme.
2021-12-30 15:49
We have added new guidance on a one-off grant funding scheme: the Omicron Hospitality and Leisure Grant. We have revised the guidance on the Additional Restrictions Grant, and updated the Debt Recovery and Assurance guidance.
2021-11-30 15:55
We have published guidance on assurance and debt recovery, returning reclaimed grants and referring outstanding debts to the government.
2021-03-31 17:53
Added sample template for declaring subsidy allowances which can be sent out to businesses.
2021-03-17 19:30
Added new guidance on the Restart Grant and updated guidance on the Additional Restrictions Grant to include £425m top-up from 1 April 2021.
2021-03-04 17:05
All guidance documents updated: closing dates added; subsidy allowance guidelines amended; requirement for a business to have been trading before restrictions were announced in order to be eligible for funding has been clarified.
2021-02-22 16:55
Guidance document 'Business support package for January 2021 lockdown' updated with details of the next payment cycle covering the period 16 February to 31 March.
2021-02-01 17:31
The deadline for applications for the Christmas Support Payment for wet pubs has been extended to 28 February 2021.
2020-11-03 23:49
First published.