A “very high number” of Harrogate businesses applying for coronavirus support grants could mean the council runs out of cash under one scheme sooner than expected.

Harrogate Borough Council was allocated £4.6m as part of the government’s Additional Restrictions Grant scheme to help firms forced to close during lockdown. So far it has handed out more than £2m in two phases of payments.

It had planned to open a third phase tomorrow but now says this is “on hold” because it is still working through a backlog of applications.

And because the council is not expecting any further grant money from the government under this scheme, it could mean some businesses expecting a third and final payment later this month may not get it.

The council said in a newsletter to businesses:

The high number of businesses asking for financial support shows 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.

Read more:

• Harrogate businesses could get grants of up to £9,000


• Grants awarded to 10 Harrogate district charities

Under another scheme, the Local Restrictions Support Grants, the council was allocated £23m and up to the end of February had paid out £18.5m.

Almost £100,000 has also been paid out to pubs that do not serve food and are eligible for a one-off payment of £1,000.

Harrogate Borough Council said it was now keen to signpost towards the government’s Restart Grant, which will aim to help businesses get back on their feet as lockdown is lifted.

Non-essential retail businesses able to reopen from 5 April will receive grants of up to £6,000, while hospitality and leisure businesses will receive up to £18,000 before they make a full return on 17 May.

For more information go to www.harrogate.gov.uk/business-investment