Covid relief funds of around £3m are to be handed to hundreds of firms with high levels of unpaid business rates and to 38 other companies who failed to apply to the scheme. Bolton Council said 'take up has been low' for the Covid-19 Additional Relief Fund (CARF), a business rates relief fund of £5,697,827 which the authority received from central government earlier this year.
The scheme is currently application based but presently awards totalling just £2,620,263 have been made (46 per cent of the funding) to eligible firms.
The remaining £3,077,564 will need to be returned to the Treasury if it is not distributed to Bolton businesses by the September 30 this year.
A meeting a Bolton Council's cabinet agreed to proposals to ditch the application aspect of the scheme distribute the remaining cash to firms who have not applied for relief but who they believe are eligible for financial support under the scheme criteria.
Councillors were told by a member of the finance department at the authority that 'one of the big challenges on this has been trying to spend the money we've been allocated'.
A report to councillors outlined how the remaining balance will be distributed in the next six weeks.
It said: "Despite information being included with the 2022/23 annual bills, targeted mail shots and direct contact with some businesses take up has been low, in common with other Greater Manchester council areas.
"38 business have been identified that were awarded previous additional restriction grant but have not applied for CARF even though they are eligible for it.
"As these businesses have already demonstrated they were impacted as part of the previous assessment it is proposed not to require a formal application or further evidence from these businesses."
The rates liability of these businesses totals £466,031, meaning the firms will receive an average of £12,264, despite not applying for funding.
The remaining £2.6m of the fund is set to be handed to businesses who have high levels of unpaid business rates.
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The report, added: " As of June 30, 2021 businesses had rates arrears totalling £5.14m in respect of the 2021/22 financial year.
"Where businesses have not been able to pay these amounts, it is reasonable to conclude that this is because they have 'adversely affected by the pandemic and have been unable to adequately adapt to that impact'.
"Consequently, it is proposed to make awards to such businesses where they meet the other eligibility criteria.
"Awards will cease once all funding has been used."
Councillors heard that the number of firms in business rates arrears and likely to be given the relief in the next six weeks was 'in the hundreds'.
The meeting heard that companies with the highest levels of business rates arrears would be targeted for the relief first.
Councillors were told by the finance department: "If we do this we're confident we can spend the remainder fo the money.
"It would give us a way of spending the full £5,697,000."
Coun Paul Heslop, said: "I think we have to accept that the businesses that are behind on business rates can't pay it for the reasons that the relief was introduced rather than other issues.
"After all we wouldn't want to reward anybody who have not paid any of their dues would we?"
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