Around £7.5 million has been paid out to owners of self-catering holiday let properties in the Keswick area to cover losses caused by the coronavirus lockdown earlier this year.
The money represents three-quarters of the £10 million that Allerdale Borough Council distributed in COVID-19 business grants of either £25,000 or £10,000 solely to such holiday let businesses on behalf of the Government.
The information is contained in confidential data obtained by councillor Markus Campbell-Savours, one of three Keswick representatives on the authority.
Having studied the statistics, he is now querying whether the £10 million handed out under strict national guidelines via small business grant fund (SBGF) or retail, hospitality and leisure grant fund (RHLGF) was well spent.
“These grant schemes have been hugely popular, allowing many businesses with premises to claim either £10,000 or £25,000, depending on their business rate valuation,” said Labour’s Mr Campbell-Savours.
However, he questioned the wisdom of the payouts and who received them.
He said: “Although I agree that the Government should be injecting money into the economy to support businesses and employment, I’m surprised that the Government has included holiday lets within these grant schemes.
“I question whether all holiday lets should be classed as businesses. Most look more like property investments to me. Why should the taxpayer be propping up investment income?
“Frustratingly, many local businesses were unable to claim these grants because they did not meet the strict criteria.
“Although clearly suffering due to COVID-19, many were businesses with much greater liabilities than those covered by the scheme. I think it’s fair to ask ‘couldn’t the Government have distributed this money in a smarter way? Was this £10 million value for money?’”
The data he obtained from Allerdale after submitting a request last month also reveals that the council has distributed £36 million so far in SBGF or RHLGF grants to businesses in the borough.
The local figures for the Keswick area are contained in a breakdown by Valuation Office property codes.
“These figures reveal that of the £36 million distributed to businesses so far, £10 million has gone to businesses classed as ‘self-catering holiday unit and premises’.
Seventy-five percent of these premises are in the Keswick area.
“I accept that some people run fully-fledged holiday let businesses and have been hit hard by the impact of coronavirus.
“I get that and I don’t think that is a problem. I’m talking about people who live away and have bought a holiday let as a ‘safe as houses’ investment because they know the property market.
“I don’t see why the Government should give £10 million when there are other companies, who support local businesses and events, that have not been able to get a penny out of Allerdale Borough Council,” said Mr Campbell-Savours.
