Soulsby renews plea for the city’s tied-up £10m

CITY mayor Sir Peter Soulsby has renewed his call for Leicester businesses to receive further coronavirus compensation.

Last week, the government announced the local lockdown would carry on for two weeks, meaning many businesses had to stay shut while the rest of the country reopened cafes, restaurants, hotels and other venues on July 4.

Leicester City Council has distributed £70 million in grants to local companies so far, but there is another £10 million the city has technically received but cannot spend and risks losing.

Sir Peter has written to Health Secretary Matt Hancock asking again for permission to use the money.

Sir Peter said: “Many businesses are finding themselves in a dire financial situation and need some certainty to know whether they have a future.

“Those businesses – and the council – are growing tired of waiting for the government to deliver on its original promise of help.

“Clearly, using this £10 million of business grant funding that hasn’t been allocated could help provide immediate aid to struggling businesses.

“We already have the local knowledge, businesses’ details and the payment system set up – we are just waiting for government permission to use that money, to which so far we’ve received no response.

“Businesses desperately need help and support at this extremely difficult time, and yet again I find myself asking the government to deliver on their original earlier promises to provide that help.”

The £10 million is part of £85 million which was earmarked for Leicester by the government’s Department for Businesses, Energy and Industrial Strategy (BEIS) for both national and discretionary grants schemes.

It has not been claimed and rules state it should be returned to the government.

Sir Peter said: “This money has already been paid to us by BEIS and sits in our bank account.

“Government do not have to pay us any further money to support businesses, we simply need permission to spend the funds we have.

“We have come up with a plan where we could provide more help to Leicester businesses by extending both the national and our discretionary grants schemes, as well as supporting those excluded from the national scheme – particularly factories, manufacturing and independent retail, hospitality and leisure.

“Extending these schemes rather than starting a new one means we could pay money out quickly – if the government will let us.”

For information on grants, click on “Business Support Grant Funding” at: