Additional support announced for businesses impacted by Omicron

One-off grants of up to £6,000 per premises for businesses in the hospitality and leisure sectors in England will be provided by the government, following the rise of the Omicron variant of Covid-19 and advice that people should “prioritise” their social interactions and to “think carefully” before attending social gatherings.

At what is 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, with Hospitality UK reporting that many businesses have lost 40-60% of their December trade, 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.

Given the uncertain situation faced by businesses, the government has decided to provide grants, which are equivalent to the monthly cash grants provided to hospitality businesses when they were fully closed earlier this year, despite businesses now being still able to trade.

As increasing numbers of Covid-19 cases means more workers taking time off work, the government is also reintroducing the Statutory Sick Pay Rebate Scheme (SSPRS).

The SSPRS will help small and medium-sized employers – those with fewer than 250 employees – by reimbursing them for the cost of Statutory Sick Pay for Covid-related absences, for up to 2 weeks per employee. Firms will be eligible for the scheme from 21 December, and they will be able to make claims retrospectively from mid-January.

To support other businesses impacted by Omicron – such as those who supply the hospitality and leisure sectors – the government is also giving a more than £100 million boost to the Additional Restrictions Grant (ARG) fund for local authorities in England.

Local authorities will have the discretion to allocate this funding to businesses most in need. The ARG top-up will be prioritised for those local authorities that have distributed most of their existing allocation. This is on top of the £250 million of previously allocated funding that remains with local authorities.

Prime Minister, Boris Johnson said: “With the surge in Omicron cases, people are rightly exercising more caution as they go about their lives, which is impacting our hospitality, leisure and cultural sectors at what is typically the busiest time of the year.

“That’s why we’re taking immediate action to help with an extra £1 billion in grants to these industries and reintroducing our Statutory Sick Pay Rebate Scheme.

“I urge people across the country to please get boosted now to secure vital protection for yourselves, your loved ones and your communities.”

 

 

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.

“So we’re stepping in with £1 billion of support, including a new grant scheme, the reintroduction of the Statutory Sick Pay Rebate Scheme and further funding released through the Culture Recovery Fund.

“Ultimately the best thing we can do to support businesses is to get the virus under control, so I urge everyone to get boosted now.”

Responding to the announcement of fresh government support measures for small firms, Federation of Small Businesses (FSB) Development Manager for Greater Manchester, Robert Downes said: “These positive measures will help alleviate the intense pressures small firms are currently under, and hopefully arrest a significant decline in confidence over this year.

“With the prospect of one million people sick or self-isolating by January, we encouraged the Chancellor to bring back the Covid statutory sick pay rebate. We’re really pleased to see our recommendation taken forward. 

“It’s vital small firms – once again up against a massively disrupted festive season – can reclaim the costs of supporting staff.”

He added: “We’ve always said that support needs to move in lockstep with restrictions, and this intervention will help give small businesses confidence that this is the approach government will be taking.”