Hospitality grants UK: how much has Rishi Sunak promised in new Covid funding 2021 - and businesses eligible

The hospitality industry has been hit hard amid the spread of the Omicron variant, and under previous lockdown measures enforced
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Chancellor Rishi Sunak announced the funding package as pressure intensifies on the government to tackle the rapid rise of Omicron this winter.

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Daily infection rates are reaching new highs while devolved administrations in Scotland and Wales have already announced stricter restrictions to curb the spread.

Here’s what we know so far about the new financial support for businesses announced today by Mr Sunak...

How much has been made available to the hospitality industry?

A new £1 billion financial support package has been made available for businesses hit worst by the recent surge of Covid cases over Christmas.

The funding will be split up between industries, with the hospitality and leisure sectors in England allocated £683 million to help them through the Omicron wave.

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It means restaurants, pubs, bars, cinemas and theatres can apply for a grant of up to £6,000 per premises, with other industries and countries also included in the support package.

What other support has been made available for businesses?

The Additional Restrictions Grant has been topped up with £102m for other struggling businesses outside leisure and hospitality sectors, which is run through local councils.

Businesses with fewer than 250 employees can claim from the Statutory Sick Pay Rebate Scheme reintroduced to cover sick pay for workers affected by Covid.

In addition to the three schemes in England, £154m has been set aside for the devolved administrations of the UK - Scotland (£80m), Wales (£50m) and Northern Ireland (£25m).

When will the Covid funding be available?

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The Treasury expects the grants to be administered by local authorities and to be available in the coming weeks.

What has Rishi Sunak said about the funding?

Rishi Sunak said the £1bn financial package was in response to the uncertainty many businesses are facing at the moment amid increasing Omicron cases.

He said: "We recognise that the spread of the Omicron variant means businesses in the hospitality and leisure sectors are facing huge uncertainty, at a crucial time.

"So we’re stepping in with £1 billion of support, including a new grant scheme, the reintroduction of the Statutory Sick Pay Rebate Scheme and further funding released through the culture recovery fund."

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UK Hospitality chiefs described the funding as a "generous package" while the British Chamber of Commerce said it would provide some "welcome respite" to businesses affected.

What has Labour said of the £1 billion funding?

Shadow chancellor Rachel Reeves called on the government to provide clarity over what restrictions are coming after Christmas.

She said: "This is a holding package from a government in a holding pattern.

"The PM continues to be too distracted by revolt from Tory backbenchers to act in the public interest.

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"Businesses and workers are crying out for clarity on what restrictions are down the road as many continue to be hit hard. The government must bring some certainty now."

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