WIRRAL council may be forced to give almost £12m worth of grants back to the government.

The authority has been given £63m in small business grants since the start of the pandemic, but as much as £11.9m of this may not be handed out to businesses in the borough.

Unless the remaining money is successfully claimed by eligible businesses before August 28, it will have to be given back to the government as the council is not allowed to use the cash to fund other services.

Some local businesses are confused about exactly what the grant offer is according to Cllr Ian Lewis, leader of the Conservatives in Wirral Council.

He said: “From my discussions with business owners and shopkeepers in Wallasey, some do not realise that this is a grant, not a loan, so it doesn’t have to be repaid. Even businesses that were able to stay open are eligible.

“It would be tragic if businesses close or jobs are lost because they do not apply for this money – it’s literally sitting in the council’s bank waiting to be claimed.

“So long as a business is registered for business rates, even if they don’t pay business rates, they could well be eligible for grants of £10,000 or even £25,000.”

Both the Small Business Grant Fund and the Retail, Hospitality and Leisure Grant remain open to eligible businesses until August 28.

Retail, Hospitality and Leisure Grants are available to businesses whose property is wholly or mainly used for one of the following functions:

  • Shops 
  • Restaurants
  • Cafes
  • Drinking establishments
  • Cinemas
  • Live music venues
  • Assembly
  • Leisure 
  • Hotels, guest and boarding premises and self-catering accommodation

Businesses must also have a rateable value of less than £51,000 to qualify.

Those with a rateable value of up to and including £15,000 will receive a grant of £10,000 and businesses with a rateable value over £15,000 and under £51,000 will receive a grant of £25,000.

To be eligible for the Small Business Grant Fund, a company must have a premises which on March 11, 2020, met the criteria for small business rate relief or rural rate relief.

Businesses can only claim from one of the two grant funds.

Cllr Janette Williamson, Wirral Council’s cabinet member for finance, said: “I would urge every eligible business to claim and not miss out on these government grants, otherwise between £6.6m and £11.9m will go back to the Treasury.”

“Under the regulations set down by the government we can only give the grants to eligible businesses and we have written again to the 780 Wirral businesses who we believe to be eligible to ask them to claim these grants.”

The Labour councillor added: “Throughout August we are also seeking to maximise the publicity to encourage applications from those yet to claim.”