Updated guidance on additional economic support announced by the Government in late December to help businesses who have been most impacted by the Omicron variant.

New Business Grants

The Government is introducing a new grant scheme to support businesses that are experiencing difficulties because of the Omicron variant. Hospitality and leisure premises will benefit from targeted grant support. The Additional Restrictions Grant will also be topped up so local authorities (LAs) can continue to use their discretion to support other businesses in their area, based on local economic need.

Hospitality (defined as accommodation, food & beverage services) and leisure premises will benefit from targeted grant support. The Additional Restrictions Grant (ARG) will also be topped up so local authorities (LAs) can continue to use their discretion to support other businesses in their area, based on local economic need.

Nearly £700 million of targeted grants for hospitality and leisure businesses in England have been allocated for the hospitality and leisure sector.

Recipients must be solvent businesses, and ratepayers in the hospitality and leisure sector. For example, a pub; hotel; restaurant; bar; cinema; or amusement park. Grants are per premises and the amount paid is varied by rateable value (RV) of each eligible premises, in three bands: £0-15k; £15-51k; and over £51k.

Rateable ValueValue of Grant
£0-15k£2700
£15-51k£4000
>51k£6000

In addition, Local Authorities (LAs) in England will receive a top-up worth a total of £102 million to their Additional Restrictions Grant fund. Up to £250 million is still currently with LAs, which they will distribute.

All grants will be subject to the subsidy control allowances. The subsidy control policy will be published as part of the scheme guidance. Businesses that are in administration, insolvent or where a striking-off notice has been made, are not eligible for funding under this scheme.

LAs are responsible and accountable for the lawful use of funds and must be satisfied that all eligibility and subsidy allowance conditions have been fully complied with when making grant payments. To do this, LAs will be expected to have pre- and post-payment assurance plans in place and undertake a Fraud Risk Assessment.

Final application and payment dates for the hospitality and leisure grants and the ARG will be confirmed in guidance published by the Department for Business, Energy & Industrial Strategy. To find your local council and for their application process see: Find your local council – GOV.UK (www.gov.uk)

The Culture Recovery Fund

£30 million of further funding will be made available through the Culture Recovery Fund to support organisations in England such as theatres, orchestras and museums through the winter. This builds on nearly £240 million allocated to cultural organisations so far or currently available for applications online. The further funding made available through the Culture Recovery Fund will support the sector until March 2022. Further details on how organisations can access funding will be set out in due course.