'I haven't got a penny left': Northampton families pushed to brink of bankruptcy criticise council's 'sluggish response' to deliver business grants

Northampton Borough Council's sluggish efforts to give businesses their duly-owed relief grants are pushing families to the brink of bankruptcy, it has been claimed.

It has been three weeks since the Government rolled out a "lifeline" grant to help businesses stay afloat during the Covid-19 lockdown.

The money was allocated to local authorities across England for them to distribute.

But now, three weeks later, England's 313 local authorities have, on average, have only processed 50 per cent of all applications - and Northampton is one of the worst.

As of April 20, Northampton Borough Council has only processed 486 of some 2,778 applications it received - fewer than one-in-five.

It means the council ranks as the 297th worst authority in the country for getting businesses this vital cash lifeline.

The result is that thousands of business owners across the town have been forced to find money to pay rent and overheads on shops they can't open and furloughed staff they need to pay.

"I've haven't got a penny left," said one businesswoman Laura Smith, who had to shut her salon, the Rose Monica in Bouverie Road, Hardingstone, on March 21 and hasn't had any income in a month.

She applied for a £10,000 grant from the borough council on April 4 - the first day it opened - but hasn't heard anything since.

She said: "Without the grant, I've had to use my own money to pay rent and costs.

"I feel terrible. You go to the shops with only £10 left on your credit card and pray your food shop doesn't cost more than that.

"I can't pay debts, I can't pay insurance, I can't help my son in London who's having trouble too.

"I've been going for 30 years, even through recessions, and I've never had it this bad. I check my bank every few hours to see if it's arrived but it's the same every time.

"I never thought I would get to 50, and work for 30 years of my life, only to get to this point. It's heart-breaking".

Laura's sister Amy Cunningham is also a businesswoman. She runs the Mrs Sew & Sew fabric shop in Earls Barton. As a single mother who works for herself, she has been faced with no income since she closed more than three weeks ago.

She told the Chron: "You can get by for two weeks but after that you start to panic.

"We're in limbo. We just keep waiting and waiting. There hasn't even been a confirmation letter yet to say I'm going to get it - what if I filled it in wrong? What do I do if it just doesn't arrive?If I don't get it what happens then?

"It's just a waiting game."

The two sisters join thousands of families across the town who applied for either a £10,000 or £25,000 grant to pay their businesses' bills.

Northampton Borough Council was contacted for a comment yesterday morning (Thursday April 23) but has not yet responded.

In a statement in a previous Chron story last week, leader Jonathan Nunn said he was 'extremely grateful' to additional staff who were "working seven-days-a-week" to tackle the applications.

He said: "Our staff are working tirelessly to process these applications as quickly as possible and I am extremely grateful to them.

“I would like to thank businesses for their patience and apologise that we are unable to respond to individual queries at this time.

“We want to ensure businesses benefit from this support, but the government also need to know that funds are being paid to the right people, so it’s essential that we take due diligence when administering these grants.

“We must be thorough, as it’s tax-payers money we are paying out, and there is some evidence of false applications being made to councils across the country.

“I would urge businesses to read the information as soon as possible, to see if they can benefit from the support on offer."

Businesses which have not yet accessed a grant can do so on the borough council's website.Eligible businesses with premises with a rateable value of up to £15,000 will receive a grant of £10,000, while those with premises with a rateable value of over £15,000 but less than £51,000, will receive a grant of £25,000.