Sunak unveils £1bn support package for hospitality and leisure

by | Dec 21, 2021

Chancellor Rishi Sunak has announced a £1bn funding package to help the hospitality and leisure sectors in England as they take a hit from a surge in Omicron cases.
The measures include a £6,000 one-off cash grant per premises. In addition, the government will cover the cost of Statutory Sick Pay for Covid-related absences for small and medium employers.

Sunak also announced an extra £30m in support for theatres and museums through the Culture Recovery Fund.

The announcement came as Hospitality UK said many pubs and restaurants have seen cancellations and reduced footfall as people have responded to the rise in cases ahead of Christmas, with many businesses having lost 40-60% of their trade in December, which is often their most profitable month.

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.”

Following an emergency Cabinet meeting on Monday, the government decided against introducing any further Covid curbs for now, but Prime Minister Boris Johnson warned the decision on further restrictions remains “finely balanced”. He said hospitalisations were rising “quite steeply” and that the government would be monitoring the situation “hour by hour”.

Dr Roger Barker, director of policy at the Institute of Directors, said: “The Government has responded to industry representations and this targeted support package will be welcome relief to many businesses.

“The Omicron variant has led to a drop in consumer demand at the worst possible time for some parts of the economy, particularly the hospitality sector. These measures will go some way to protect and compensate those most adversely affected.

“However, with the unwinding of a number of remaining support schemes at the end of Q1 2022, such as the VAT reduction for hospitality and business rates support, businesses also need the reassurance that these measures will now last for longer into 2022.”

Related articles

Aldi and Lidl win UK Christmas battle

Aldi and Lidl win UK Christmas battle

(Sharecast News) - German discounters Aldi and Lidl performed best in December, according to data from retail expert Kantar, which said a record £13.7bn was spent at British supermarkets over the four weeks ended 24 December. Kantar recorded Lidl's sales growth at...

UK house prices fall 1.8% YoY in December – Nationwide

UK house prices fall 1.8% YoY in December – Nationwide

(Sharecast News) - UK house prices fell by a higher-than-expected 1.8% year on year in December, mortgage lender Nationwide said on Friday, as higher borrowing costs and deposit requirements deterred buyers. Expectations were for a 1.4% fall. Prices remained flat on a...

Trending stories

Join our mailing list

Subscribe to our mailing list to receive regular updates!

x