Retail, leisure and hospitality business will be eligible for one-off top-up grants of up to £9,000, with a £594m discretionary fund launched for other businesses.

The cash on offer is on top of the grants of up to £3,000 already available under the tier system, and are expected to benefit over 600,000 businesses according to the Treasury,

The Chancellor said:
“The new strain of the virus presents us all with a huge challenge – and whilst the vaccine is being rolled out, we have needed to tighten restrictions further.

Throughout the pandemic we’ve taken swift action to protect lives and livelihoods and today we’re announcing a further cash injection to support businesses and jobs until the Spring.

This will help businesses to get through the months ahead – and crucially it will help sustain jobs, so workers can be ready to return when they are able to reopen.”

UKHospitality Chief Executive, Kate Nicholls, said:

“This is obviously a very positive step to keep businesses afloat in the immediate term and, for that reason, must be welcomed. The Chancellor has rightly recognised the costs imposed on hospitality businesses by enforced closures and the need for additional support. It is also encouraging that the discretionary grants address the suffering in the supply chains upon which our sector is reliant.

“However, while this announcement is most welcome, make no mistake that this is only a sticking plaster for immediate ills – it is not enough to even cover the costs of many businesses and certainly will not underpin longer-term business viability for our sector. To address the inevitable and existential challenges that hospitality faces, we need confirmation of extensions to the business rates holiday and of the 5% VAT rate.

“On its own, today’s support is not enough. Businesses need a longer-term economic plan and it would befit the crisis that we face if the Chancellor brought forward his Budget to make the announcements necessary to reassure businesses and allow them to plan their survival. Commercial certainty cannot come soon enough and only the Chancellor can deliver it.”

Rain Newton-Smith, CBI Chief Economist, said: 

“The Chancellor has once again moved swiftly to support businesses as circumstances change. It is sorely needed.

“More direct grants will provide some relief to eligible companies’ cashflow.

“Yet with businesses facing a third lockdown, there are other steps that can help provide a bridge to the all-important economic recovery, particularly those affected through supply chains.

“For some, demand has once again evaporated overnight, and in northern England some firms have been labouring under stop-start orders for months already.

“Therefore extending the job retention scheme to end of the second quarter would provide firms with a clear line of sight, aiding planning and investment.

“And removing the business rate relief cliff edge in April will provide much-needed breathing space, as will re-examining the case for VAT deferrals.

“With the vaccine rollout now underway, and increasing mass rapid testing, there really is a brighter future within reach. Maintaining steadfast support for firms during this painful period will help ensure the recovery is delayed for as short a time as possible.”

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