Conservative minister ‘unaware’ local party association received £10,000 from Covid relief fund to help businesses

Scheme was set up by Rishi Sunak to help struggling businesses through the pandemic

(AFP via Getty Images)

A Tory minister has claimed he was “unaware” his local constituency party was awarded a £10,000 relief under a Treasury fund designed to help small businesses through the pandemic.

Nigel Adams, a foreign office minister, said he didn’t “know anything” about the grant provided to the Selby and Ainsty Conservative Association in Tadcaster, which is also listed as the MP’s constituency office address.

Under the scheme, unveiled by chancellor Rishi Sunak at the onset of the pandemic in Britain, retail, hospitality and leisure businesses are eligible for a business rate holiday, with local councils responsible for administering the funds.

According to the Huff Post, the minister’s Selby and Ainsty Conservative Association was provided with the business rates relief for their high street office.

In response to a freedom of information request asking whether the funds made available had been used to fund MPs or their premises, the local authority told the website: “I can confirm a small business rate relief grant of £10,000 was awarded to Selby and Ainsty Constituency Conservative Association for their offices at 17 High Street, Tadcaster.”

The Independent Parliamentary Standards Authority (IPSA), the body responsible for regulating MPs’ salaries, business costs and expenses, issued guidance to MPs earlier this year advising them to “decline” small business grants from councils.

However, Selby and Ainsty Conservatives told The Independent the guidance was not “relevant” in this case as the grant “was correctly applied for and paid to the Association, who are the tenants, main occupiers of the office premises and responsible for any business rates payable”.

They added: “Our MP has a licence to use rooms in our premises when he and his staff require them. He is not responsible for the business rates and as such, does not use his IPSA allowance to claim such costs.”

Mr Adams also told Huff Post he was “unaware” of the grant and said: “I don’t know anything about it.”

Labour’s deputy leader Angela Rayner said: “No money for free school meals for hungry kids according to Tory MPs. How about this for taxpayer funded handouts though?”.

Wendy Nichols, the Labour deputy leader of Selby District Council, added the “troubling revelation” raised serious questions, insisting the business rate relief grant is designed to help businesses survive not to fund political parties.

A Conservative Party spokesperson, however, said: “The Selby and Ainsty Conservative Association applied for the coronavirus business rate relief fund to Selby district council and were deemed eligible by Selby district council.

“Local political associations are no different from other organisations in facing challenging times. The purpose of the coronavirus business rate relief fund is to protect organisations and prevent local job losses.

“The funding from the coronavirus business rate relief fund is in line with guidance from HMRC and the Electoral Commission.”

The Independent has also contacted Mr Adams’s office and Selby district council for comment.