Service Industries: Coronavirus

(asked on 2nd February 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps his Department is taking to help the retail, hospitality and leisure sectors recover from the covid-19 outbreak.


Answered by
Helen Whately Portrait
Helen Whately
Minister of State (Department of Health and Social Care)
This question was answered on 10th February 2022

In December, Government announced a £1bn package of support for businesses impacted by the Omicron variant. This included grants worth up to £6,000 for businesses in the hospitality and leisure sectors.

These measures are just the latest action we have taken to safeguard businesses and jobs and are in addition to:

  • business rates relief meaning that the majority of businesses in the retail, hospitality and leisure sectors will see a 75% reduction in their business rates bill across the entire financial year and a new 50% capped business rates relief next financial year;
  • a 12.5% reduced rate of VAT for hospitality and tourism;
  • access to finance for SMEs through the Recovery Loan Scheme to June; and
  • Bounce Back Loan repayment flexibility, with borrowers having the option to take a 6 month repayment holiday, three 6 month interest only periods or extend their loan to 10 years, which almost halves the monthly payment.

Thanks to the Government’s decisive action to implement balanced and proportionate measures in response to the Omicron variant, Cabinet has decided to return to Plan A in England. This means the economy will get back to operating freely and businesses can recover more quickly.

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