Rural pubs: £1 billion in support for businesses most impacted by Omicron across the UK

Chancellor Rishi Sunak has announced a £1 billion emergency support package for hospitality and leisure businesses hit hardest by the pre-Christmas collapse in trade caused by the surge in Omicron.

• Businesses in the hospitality and leisure sectors in England will be eligible for one-off grants of up to £6,000 per premises, plus more than £100 million discretionary funding will be made available for local authorities to support other businesses
• Government will also cover the cost of Statutory Sick Pay for Covid-related absences for small and medium-sized employers across the UK
• £30 million further funding will be made available through the Culture Recovery Fund, enabling more cultural organisations in England to apply for support during the winter

The announcement comes after a recent Countryside Alliance survey revealed many rural pubs are on the brink of closure after a recent rapid decline in footfall.

The survey of 32 pubs from across the country found just that just one pub had seen an increase in trade this year while 30 have seen a drop. Already 35 per cent have been forced to lay off staff and 48 per cent are closing early.

In total 83 per cent reported Christmas party cancellations and one in five have seen losses of more than £20,000 while about 32 per cent have had losses of over £10,000.

The survey found 51 per cent said they were "likely" to go out of business next year unless restrictions are lifted, or the Chancellor bails them out.

Chancellor of the Exchequer, Rishi Sunak said:

"We recognise that the spread of the Omicron variant means businesses in the hospitality and leisure sectors are facing huge uncertainty, at a crucial time.

"So we're stepping in with £1 billion of support, including a new grant scheme, the reintroduction of the Statutory Sick Pay Rebate Scheme and further funding released through the Culture Recovery Fund.

"Ultimately the best thing we can do to support businesses is to get the virus under control, so I urge everyone to Get Boosted Now."

Mo Metcalf-Fisher of the Countryside Alliance said: " The message from publicans that took part in our survey was clear: the situation on the ground is bleak and urgent assistance is needed. The support announced today will be a relief for many businesses that have been incredibly concerned about making ends meet.

" It is reassuring that the Chancellor has committed to monitoring the ever-changing situation closely and that he will act again if required.

" The crucial point now is that these businesses obtain the grants as quickly as possible."

Kate Nicholls, the chief executive of UKHospitality, which represents the sector, said: "Now is the time to get emergency cash support to businesses to struggling with revenue hit and cashflow squeeze and they will help them protect jobs and keep business afloat.

"We hope that this will be a short period of restrictions and that then we can get back to managing to live with the virus and reverse restrictions as quickly as possible to allow business to recover rapidly."

A full copy of the recent announcement can be viewed here.