Additional support will be available for businesses who have been affected by the Omicron variant, chancellor Rishi Sunak has announced.
Chancellor of the Exchequer, Rishi Sunak MP
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.
Government will also cover the cost of statutory sick pay for covid-related absences for small and medium-sized employers across the UK.
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. HospitalityUK has reported that many businesses have lost 40% to 60% of trade this December, 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.
Keith Bott, managing director of Titanic Brewery, said: “Titanic Brewery are pleased that the government has recognised the impact omicron is having on UK hospitality and especially those that supply it.
“Whilst it is welcome, this financial help doesn’t come close to recovering the loss in trade we have all experienced at our busiest time of year. All we would ask is that this support finds its way to the intended destination quickly and efficiently. Continued uncertainty over restrictions means we are unable to plan production and causes further damage.”
Keith is also president of PubAid, a national organisation dedicated to promoting pubs as a force for good in their local communities.
James Calder, chief executive of the Society of Indpendent Brewers (SIBA), said: “Under today’s announcement, small brewers will have to apply to their local authorities for support, which in many cases has not been forthcoming during the devasting 18 month covid-19 pandemic. Support and access to those grants has also varied massively from postcode to postcode.
“While brewers should be able to access the Covid Additional Relief Fund, this funding and mechanism was announced in March and local authorities are yet to even set up the scheme for small brewers to apply, with the legislation only just passing through Parliament. This contrasts with the action taken in Scotland, where the government has previously provided direct and significant assistance under the Brewers Support Fund.”
He added: “Our independent brewing sector relies on pubs for 80% of their sales and have seen sales fall off a cliff in recent weeks under the government’s lockdown in all but name. The Christmas period is a key trading time for small brewers, who may not now survive into the new year.”
“Other measures, including flexibility to pay HMRC, wiggle room on bounce-back loan repayments, and the new statutory sick pay refund scheme should all be welcomed and will help. But, combined, these measures do not go far enough to compensate for the losses brewing will make in December, the profits from which are vital to see businesses through the notoriously quiet post-festive period.”
CAMRA chair, Nik Antona, said: “Today’s announcement of grants of up to £6,000 and some help with staff sick pay will certainly be welcomed by publicans up and down the country.
“It is a first step in the right direction, and important recognition from ministers that the actions of government have massively hit consumer confidence, footfall, and the ability for businesses to turn a profit at what should be their busiest time of the year.
“Sadly, for some pubs that have already closed their doors due to cancellations and a huge drop in trade, this support will be too late. Whilst the grants announced today may help businesses through the next few weeks, it will not make up for losing out on the Christmas trade, which is vital for keeping pubs and breweries going during the quiet months at the start of the year.”
He added: “In addition to getting these grants paid to licensees as quickly as possible, it is vital that local councils in England use their discretionary funding to support breweries, cider producers, and other businesses in the supply chain who have also been affected.
“Businesses still desperately need certainty on what might happen next. If further restrictions are going to be imposed there needs to be enough time for pubs and breweries to plan and prepare. In the face of any restrictions on trading, the sector will also need a comprehensive support package over and above what has been announced today, including further employment support through furlough, rent support, and business rate relief to support and safeguard our locals.”
