Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether Local Authorities have discretion not to award grants to (a) holiday lets and (b) other businesses that cannot explicitly prove that they have been directly financially impacted by the Omicron variant.

Holiday accommodation businesses are eligible for the Omicron Hospitality and Leisure Grant (OHLG) scheme provided they can evidence they are trading as a business and are listed on the business rates register. Second homeowners not trading as a business cannot claim a grant of any amount. Where a Local Authorities determines that a business is not trading they will not be eligible for a grant. This is consistent with steps announced by Government on 14 January 2022, which mean that owners of second homes who abuse a tax loophole by claiming their often-empty properties are holiday lets will be forced to pay their fair share of tax under tough new measures due to be introduced from April 2023.

Local Authorities have the discretion to use Additional Restrictions Grants (ARG) funding to support businesses in the way that best meets local economic need, in line with the scheme guidance. Local Authorities are encouraged to focus ARG support on businesses who have been severely impacted by reduced business activity due to the spread of the Omicron variant. The guidance does not mandate specific evidence to determine if a business has been severely impacted by Omicron. It is for Local Authorities to issue grants at their discretion, based on local decision making.

The guidance for both OHLG and ARG schemes can be found here.