Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what plans he has to make additional support available to businesses in response the omicron phase of covid-19.

This question was answered on 11th January 2022

The Government has announced £1 billion of new grant support for the hospitality, leisure, and cultural sectors to protect jobs and businesses through this period of uncertainty. We are bolstering our package of existing support with:

• New one-off cash grants of up to £6,000 to support eligible businesses in the hospitality and leisure sectors, totalling nearly £700 million.
• Over £100 million of new discretionary funding to local authorities to support other impacted businesses, particularly those in the supply chain. This is on top of around £250 million that Local Authorities already have available to distribute at their discretion.
• £30 million through the Culture Recovery Fund, to support theatres, museums, and other vital cultural institutions through the disruption this winter.
• The reintroduction of the Statutory Sick Pay Rebate Scheme to help small and medium-sized employers cover the cost of Covid-related sick absences, covering up to two weeks per employee.
• HMRC stands ready to support any business affected by the coronavirus pandemic through its Time to Pay arrangement. As part of this, businesses in the hospitality and leisure sectors in particular will be offered the option of a short delay, and payment in instalments, on a case-by-case basis.

This additional funding is on top of the generous and wide-ranging support package already in place, which the Chancellor announced at the Spring and Autumn Budgets 2021. Small and medium-sized businesses can access Government-guaranteed finance through the extended Recovery Loans scheme until next June. Businesses will also be protected from eviction if they are behind on rent on their premises, thanks to the moratorium in place until March 2022.

In addition, business rates relief for eligible retail, hospitality, and leisure businesses in England is available until March 2022. Hospitality and tourism businesses will continue to benefit from a VAT reduction, paying only 12.5 per cent until March 2022.

The Government has also recently published guidance for the £1.5 billion COVID-19 Additional Relief Fund, allowing local authorities to provide financial support for businesses not impacted by existing reliefs, such as breweries and wholesalers.

As we have done throughout the pandemic, we are closely monitoring the impact of COVID-19 on the economy. We will continue to respond appropriately and proportionately to the changing path of the virus.