The chancellor of the exchequer Rishi Sunak has announced plans to assist businesses that are being hit hardest by the
Omicron variant, with £1bn of financial support to be provided to the hospitality sector.
Hospitality companies will be able to claim a cash grant worth £6,000 to help offset some of the losses they have incurred during what is usually the busiest time of the year for the industry.
Sunak also said that reduced VAT of 5% for the hospitality and entertainment sectors will continue up until Spring 2022, as well as a re-introducing a sick pay scheme for small and medium-sized companies.
Today’s news was welcomed by a depleted industry, with Kate Nicholls, chief executive of trade body UKHospitality saying the package will "help to secure jobs and business viability in the short term, particularly among small businesses in the sector".
While Prime minister Boris Johnson did not impose further restrictions yesterday, he refused to rule out the possibility of that happening in the future, saying the government was considering "all kinds of things to keep Omicron under control” and that it “will rule nothing out".
Should further measures be imposed to curb the spread, which is looking likely at this point, Sunak has confirmed that he intends to act accordingly and consider further financial help, something that Emma McClarkin, the chief executive of the British Beer and Pub Association, believes is necessary.
“It will be absolutely essential that the Government continues to monitor and support our sector for the long-term as we ride out the pandemic and into recovery.”
She added the government must ensure “pubs and brewers continue to have the support they need, including further financial support if further restrictions are introduced, along with a clear timeline for the lifting any such measures."
The hospitality sector had been calling for support for weeks as the Omicron variant has crippled the industry.
Several establishments, including Aim-listed City Pubs, closed the doors to it city centre pubs early, with bookings down as much as 50% in London compared to pre-pandemic levels.