Less than a quarter of local authorities have paid out their full grants from the COVID relief fund for local businesses, new research reveals.
During the pandemic, the Government introduced the £1.5bn COVID-19 Additional Relief Fund (CARF) which was allocated to councils to help companies that were struggling with business rates.
New research by property consultancy Colliers has revealed that only 75 local authorities – or 24.3% of the 309 local authorities in England – had paid out all of their grant allocations as of September 2022.
Westminster Council was the biggest distributor and has paid out £87.3m to local businesses (98% of allocation). It is followed by the City of London which has paid out £57.8m (90% of allocation).
Birmingham City Council was third, paying out £28.5m (95% of allocation) and Tower Hamlets was next with £26.4m (100% of allocation).
Camden Council paid out £27.7m to businesses, but this was only 70% of its grant allocation, and Manchester City Council paid out £15.9m which was only 66% of its allocation.
There are also 22 local authorities that still had not paid out anything, only six of which stated their schemes had been approved, according to Colliers. Among these 22 are Kensington & Chelsea, Lewes, Northwest Leicestershire, Stratford upon Avon, Watford and Torbay.
Colliers head of rating John Webber described the distribution of CARF as ‘carnage’ and a ‘postcode lottery’.
‘It has been a nightmare for all concerned – from local authorities to ratepayers and those who manage on their behalf,’ he said.
