Chancellor announces £1 billion in support for business impacted by new COVID variant

Chancellor Rishi Sunak has announced a package of support for businesses impacted by the Omicron variant of COVID-19

Businesses in the hospitality and leisure sectors in England will be eligible for one-off grants of up to £6,000 per premises, plus more than £100 million discretionary funding will be made available for local authorities to support other businesses. 

This comes as the rise of the Omicron variant means some businesses are likely to struggle over the coming weeks. 

At what is often their most profitable time of year, many pubs and restaurants have seen cancellations and reduced footfall as people have responded to the rise in cases ahead of Christmas, with Hospitality UK reporting that many businesses have lost 40-60% of their December trade, often their most profitable month.

Around 200,000 businesses will be eligible for business grants which will be administered by local authorities and will be available in the coming weeks.

The Government will also cover the cost of Statutory Sick Pay for Covid-related absences for small and medium-sized employers across the UK. 

Meaning businesses with fewer than 250 employees will be helped by reimbursing them for the cost of Statutory Sick Pay for Covid-related absences, for up to 2 weeks per employee. 

Firms will be eligible for the scheme from today and they will be able to make claims retrospectively from mid-January.

A further £30 million pound of funding will be made available through the Culture Recovery Fund, enabling more cultural organisations, such as theatres & museums in England to apply for support during the winter. 

Chancellor of the Exchequer, Rishi Sunak 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.

“Ultimately the best thing we can do to support businesses is to get the virus under control, so I urge everyone to Get Boosted Now.”

The package hasn’t been welcomed by some in Greater Manchester, with Night Time Economy Adviser, Sacha Lord tweeting: “It’s not a package.

It’s an insult.”

It’s not a package.

It’s an insult.

— Sacha Lord (@Sacha_Lord) December 21, 2021

Dave Mountford, of the Forum of British Pubs welcomes the support. 

He said: “As the founder member of the Forum of British Pubs, I welcome the recognition of the need for support - however Mr Sunak’s 6k just covers the lost revenue from our normal Christmas weeks takings”

As the Founder member of the Forum of British Pubs I welcome the recognition of the need for support - however Mr Sunaks 6k just covers the lost revenue from our normal Christmas weeks takings @talkRADIO @GBNEWS @JamesDalyMP @pubscodepca

— Forum of British Pubs (@forpubs) December 21, 2021

Labour say the support is welcome, but add they’ll be looking at the detail to see which businesses and workers are included and excluded. 

The opposition are also calling on the government for clarity on what restrictions are ‘down the road.’