£700 million support package launched for businesses impacted by Omicron

Businesses in England most impacted by the Omicron variant will receive a multimillion-pound support package in the coming weeks, as the government today delivered funding to councils across the country.

Firms in the hospitality, leisure and accommodation sectors, many of which have seen a decline in footfall and increased cancellations due to the Omicron variant, will be able to apply for one-off grants of up to £6,000 per premises depending on rateable value.

In addition, more than £100 million worth of discretionary funding is also being made available for local authorities to support other businesses.

Business Secretary Kwasi Kwarteng said: “All through the pandemic we have stood by the side of business to ensure they are supported at every stage.

“The spread of the Omicron variant is presenting new challenges, particularly for the hospitality and leisure sectors, so it’s only right that we are stepping up with an urgent £1 billion support package.

“I urge businesses to come forward, engage with their local council and tap into these cash grants, which will help to cover costs and protect jobs as we double down on our efforts to get boosted and defeat this virus.”

The grant funding forms part of a £1 billion support package which includes an additional £30 million for the Culture Recovery Fund and reintroducing the Statutory Sick Pay Rebate Scheme – reimbursing eligible businesses for the cost of Statutory Sick Pay for COVID-related absences.

Businesses eligible for grants are those that offer in-person services, where the main service and activity takes place in a fixed rate-paying premises, in the hospitality, leisure and accommodation sectors. For example, this includes businesses whose main function is providing a venue for the consumption and sale of food and drink, those that provide facilities linked to recreation and entertainment, as well as businesses whose main premise is used for holiday accommodation.

Other businesses impacted by Omicron, such as those that supply the hospitality and leisure sectors as well as personal care services, are also able to apply for grants with the government allocating more than £100 million to the Additional Restrictions Grant (ARG) fund for local authorities in England.

Local authorities will have discretion to allocate this funding to businesses most in need.

The Business Secretary has written to those local authorities who have more than 5% left over from previous ARG funding rounds, instructing them to disburse their remaining funding.