Everything we know about the new Omicron hospitality grant

It has been announced that more than £1 billion of support will be made available to businesses affected by the Omicron variant.

According to the Government, firms in the hospitality and leisure sectors in England will be eligible for one-off grants, while other businesses may be eligible for discretionary funding.

Here’s what we know so far.

Grant funding

HM Revenue & Customs (HMRC) has confirmed that businesses in the hospitality (defined as accommodation, food, and beverage services) and leisure sectors will be eligible for a one-off grant of up to £6,000 per premises – equivalent to the monthly cash grants provided to hospitality businesses when they were fully closed earlier this year.

It means that around 200,000 firms will receive support “in the coming weeks”, providing they are solvent businesses.

Grants are per premises and the amount paid is varied by rateable value (RV) of each eligible premises, in three bands: £0-15,000 (£2,700 grant); £15-51,000 (£4,000 grant); and over £51,000 (£6,000 grant).

It comes after recent research revealed that local firms have lost 40 to 60 per cent of their December trade – usually the most profitable month of the year.

Discretionary funding

Councils will also be handed £100 million to support businesses indirectly affected by the coronavirus pandemic, such as those who supply the hospitality and leisure sectors.

The Additional Restrictions Grant (ARG) will be awarded on a case-by-case basis to businesses “most in need”.

When can I claim?

Final application and payment dates for the hospitality and leisure grants and the ARG will be confirmed in guidance published by the Government later this year.

Hospitality and leisure sectors “facing huge uncertainty”

Announcing the scheme, 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.”

Michael Izza, ICAEW Chief Executive, added: “The emergency funding will give hospitality and leisure businesses some welcome respite and go some way to helping offset lower customer numbers during this important trading period.”

Get advice today

For help and advice with related matters, please get in touch with our grant funding team today.