Sunak support provides welcome boost to hospitality

£1bn to help fund businesses hit by the latest rise in Covid-19 cases.

The Chancellor has revealed a package of support worth £1bn to help fund businesses hit by the latest rise in Covid-19 cases.

Whilst measures such as grants and furlough schemes of the past have helped prop-up businesses in the hospitality sector in previous times, the Omicron variant has led to people being more cautious. But, while people are sensible in cancelling any “unnecessary” social contact, it has left many businesses feeling at risk.

The Christmas period is an important one for trade, as many retail and hospitality businesses rely on a bumper festive season to get them through the rest of the year. But, with the drought of previous lockdowns hanging over them, it was more important than ever to make sure there was the right support in place to help stop those businesses going under.

Hospitality businesses like pubs and restaurants will be able to apply for cash grants of up to £6,000 per premises. The Chancellor has also said the government would help some firms with the cost of sick pay for Covid-related absences.

Furthermore, theatres and museums will benefit from an extra £30m fund.

In brief, the details of the Chancellor’s announcements include:

  • Restaurants, bars, cinemas and theatres can apply for a grant of up to £6,000 for each of their premises. The Treasury is setting aside £683m for these grants and it will be provided under existing council-run schemes.
  • Other struggling businesses outside leisure and hospitality can apply to local councils for a different grant under the Additional Restrictions Grant, which has been topped up with £102m.
  • The Statutory Sick Pay Rebate Scheme is being reintroduced, meaning business with fewer than 250 employees can claim money to cover sick pay for employees who are affected by Covid.
  • An extra £30m for arts organisations through the existing Culture Recovery Fund.

This will be welcome news, no doubt, for the businesses in those affected sectors. We will keep a close eye on the news as it develops – but it looks as though the support is as good as it gets for now.

In the meantime, if you have any questions about the support you may be entitled to, or would like any legal help for your business, contact the team at Downs Solicitors for more information.

Richard Clapham

Richard Clapham


Tel: +44 (0) 1483 411531

Office: Godalming Office