Grants up to £6,000 each announced for hospitality sector hit by cancellations

The chancellor has set out measures to help England’s hospitality sector as it struggles with a collapse in bookings sparked by the rise in Covid cases.

Speaking today ((21 December), Rishi Sunak unveiled a £1bn fund including cash grants of up to £6,000 per premises for each eligible firm.

He said the government would also help certain firms with the cost of sick pay for Covid-related absences.

The chancellor also announced an extra £30m to help theatres and museums.

He said the “generous” new support recognised the situation many hospitality and leisure businesses faced in the run-up to Christmas.

However, he wouldn’t be drawn on whether further help would come should further restrictions be announced, as ministers come under pressure to tackle the rapid rise of the Omicron variant.

On Monday, a further 91,743 Covid cases were reported across the UK – the second highest daily total on record.

Citing his track record in government, the chancellor insisted he would “always respond proportionately and appropriately to the situation we face”.

But he added he thought the measures announced today were comparable to the grants that were on offer when businesses were fully closed earlier this year.

He highlighted support that is already in place that will last through to next spring, citing a reduced rate of VAT for the tourism and hospitality sectors and a discount on business rates.

With just four days until Christmas, people are looking forward to spending the festive season with loved ones after many missed out last year, when restrictions were brought in just before Christmas.

On Wednesday, Mr Johnson advised people to “think carefully before you go” out to socialise. The UK’s chief medical officer Prof Chris Whitty also urged people not to “mix with people you don’t have to”.