Harrogate Covid business grants scheme halted due to ‘very high’ demand
The council has handed out more than £2m in payments so far.
A coronavirus business grants scheme in Harrogate could be halted because of high demand.
Harrogate Borough Council was allocated £4.6m as part of a government scheme to help firms forced to close during lockdown - and has handed out more than £2m in payments so far.
Some businesses expecting a third and final payment from the council later this month may not get it - as the council warns it's running out of cash on the scheme.
The next phase of the scheme has been postponed while the council works through a backlog of applications.
In a statement, the council said: “We received a very high number of applications in phase two, far more than anticipated, and we are continuing to work hard to complete assessment of these.
“Until we have assessed and awarded all the grants in phase two we are unable to commit to a further grant funding phase.”
The high number of businesses asking for financial support shows just how seriously the strain of the pandemic is still being felt in Harrogate’s shutdown sectors of the economy - and could mean all of the £4.6m is used up before the third phase is opened.
Some business owners who had been expecting a third payment told the Local Democracy Reporting Service that the grants will be “the difference between survival and closure” for many firms as they also called on the government to provide more support.
A Harrogate Borough Council spokesperson said: “We recognise that many businesses across the district are relying on this financial support for their survival, so that’s exactly why we’ve been working as hard as possible to get money out the door.
“In total, across all schemes since the first lockdown, we’ve distributed £70 million to more than 5,000 businesses.
“There are strict criteria for the various grant schemes, and the different phases of those schemes, and we’ve had to make sure businesses are eligible for the support on offer.”