Sunak to announce £5bn grant support scheme for hospitality
Chancellor Rishi Sunak is to announce grants of up to £18,000 for hospitality businesses in Wednesday’s Budget to help facilitate the sector’s restart this summer.
Part of a £5bn support scheme, the grants will be allocated based on the value of a property. Properties with a rateable value of £15,000 or under will receive £8,000, those with a rateable value between £15,000 and £51,000 will be entitled to £12,000 while properties with a rateable value of £51,000 or over will receive the highest amount at £18,000.
An additional £425 million has also been added to the Additional Restrictions Grant (ARG) fund to help those not receiving the grants.
UKHospitality has welcomed the new package of support with CEO Kate Nicholls, saying: “This announcement is great news for hospitality businesses that have been struggling to see how they could survive through to the Prime Minister’s reopening dates. Cash reserves have been severely depleted after a year of closure and restrictions and these grants are a very welcome boost, putting the sector in a better place to restart.
“It is absolutely critical that the grant funding is put into the hands of hospitality business owners as quickly as possible. Businesses are crying out for the cash now so there can be no further delays which might make it too late for some.”
Describing the news as a “positive step”, Kate also stressed the need for it to be part of a wider package at the Budget that includes an extension to the 5% VAT rate for a full year and a business rates holiday through 2021/22.
She adds: “Without these measures, and full furlough while we re-open, the hospitality sector’s recovery will be stunted along with our ability to start tackling unemployment by creating jobs.”