Hartlepool hotel owner voices concerns after being turned down for pandemic support grant
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Lee Dexter, who owns The Marine Hotel at Seaton Carew, approached Hartlepool Borough Council about applying to its £876,500 Discretionary Grant Fund.
It is aimed at small businesses and charities with under 50 employees which have seen a big loss of income because of Covid-19.
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Hide AdMr Dexter was informed by Hartlepool council officials he was not eligible to apply for The Marine Hotel, which employs around 25 people, because its rateable value is higher than £51,000.
But he received £10,000 from Redcar and Cleveland Borough Council’s £1.35million fund for The Park Inn in Redcar which he also owns and runs with wife Claire and has a rateable value of around £57,000.
Mr Dexter said: "Redcar and Cleveland council gave us £10,000 within a week. It was great and very easy to apply.
"Why is Hartlepool’s discretionary fund different to Redcar and Cleveland’s?
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Hide Ad"It won’t just be us. There will be other local businesses like us getting no help at all.”
Mr Dexter said he has probably paid around £500,000 in rates to Hartlepool council over the years, adding: “In desperate times they are not prepared to help our sized business which seems very unfair.”
Hartlepool Borough Council says the rateable value limit is in line with government guidance and they have lobbied Whitehall for greater funding for larger and hospitality businesses.
A spokesperson said: “This is a limited pot of money – £876,500 with a maximum award of £10,000 – to support businesses that weren’t eligible for help under previous Government national funding initiatives.
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Hide Ad"We are still processing applications but we expect that this funding will be fully committed.
“The funding awarded is based on a range of criteria, including a business’s rateable value.
"For this particular initiative, the rateable value limit has been set at £51,000 which is in line with guidance issued by the Government.
“It is important to note, however, that as an authority we have been lobbying the Government to consider the needs of larger retail and hospitality businesses when providing this type of financial assistance.”
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Hide AdRedcar and Cleveland Borough Council said: “As a business-friendly authority in an area with an important tourism industry, the council is fully committed to supporting our leisure/hospitality businesses.
"The council can confirm that a business support grant was given to this hotel [The Park] which assisted the business during the COVID-19 situation.
"The hotel business exceeded the Government’s general guidance with regard to businesses with a rateable value of £51,000, however, the Government has been clear in allowing council discretion in order to take advantage of strong local knowledge of the area’s economy and businesses built over many years to ensure the most effective business support possible.”