Fresh calls have been made for councils to be allowed to dole out to businesses the £1.6bn unspent from the Government’s small firms grant funds.

The calls come after the Government confirmed that local authorities should close their small business grants fund, the retail, hospitality and leisure grants fund and the discretionary grant fund by Friday August 28.

Councils have expressed concerns that the deadline will not allow them enough time to pay out the remaining grants.

Chair of the LGA’s resources board, Cllr Richard Watts, said: ‘Shutting the discretionary scheme would be a mistake by the Government at this time.

'Councils need more time and flexibility to ensure as many businesses can benefit from this funding.'

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