Hospitality Industry: Coronavirus

(asked on 8th January 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps his Department is taking to support the hospitality industry during the January 2021 covid-19 lockdown period.


Answered by
Kemi Badenoch Portrait
Kemi Badenoch
President of the Board of Trade
This question was answered on 18th January 2021

On 5 January the Chancellor announced one-off top up grants for retail, hospitality and leisure businesses worth up to £9,000 per property to help businesses through to the Spring.

The cash is provided on a per-property basis to support businesses through the latest restrictions, and is expected to benefit over 600,000 business properties, worth £4 billion in total across all nations of the UK. This grant comes in addition to the Local Restriction Support Grants worth up to £3,000 a month for closed businesses.

A further £594 million is also being made available for Local Authorities and the Devolved Administrations to support other businesses not eligible for the grants, that might be affected by the restrictions. This funding also comes in addition to £1.1 billion further discretionary grant funding for Local Authorities.

The Government is also delivering support to the hospitality sector through:

  • The Coronavirus Job Retention Scheme (CJRS), which has supported 1.4 million jobs across the hospitality sector and has been extended until the end of April 2021.
  • An additional £1,000 Christmas grant for ‘wet-led pubs’ who missed out on business during the busy Christmas period.
  • A VAT deferral ‘New Payment Scheme’ whereby businesses which deferred their VAT due between March and June until March 2021 will have the option of making 11 payments spread throughout the year rather than one lump sum.
  • Access to affordable, Government-backed finance through the Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBLS) for larger firms, along with the Bounce Back Loan Scheme (BBL) for small and micro enterprises.
  • A 12-month business rates holiday for all eligible retail, leisure and hospitality businesses in England, saving around 350,000 ratepayers a combined £10 billion.

The Government is continuing to collect evidence on the impact of the pandemic on the hospitality industry and work with businesses and representative groups to ensure that support provided is right for this industry and the economy as a whole.

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