Commenting on the Chancellor's announcement of additional support for businesses impacted by the Omicron variant, Head of Research at the Chamber, Subrahmaniam Krishnan-Harihara (pictured), said:
"Nearly two weeks after the Prime Minister confirmed the implementation of Plan B restrictions to counter the spread of the Omicron variant of Covid-19, and following repeated demands by business groups, the Chancellor has announced additional support to businesses. This support will be welcomed by businesses especially those in hospitality who have faced a spate of cancellations and a huge loss in revenue as the number of cases increased and public confidence went down.
"The latest package of support comes amidst reports that there could be more restrictions and/or a 'circuit breaker' lockdown after Christmas. The primary element of this support package is a one-off grant of up to £6,000 for businesses in the hospitality and leisure sectors. These grants will be administered by local authorities using data they hold about business rates payers. As was the case with support offered to businesses during the Covid-19 crisis, businesses that do not have a rateable value - for example, if they occupy shared office space where the rent includes business rates - will not receive these grants. Some parts of retail and the supply chain to hospitality and leisure could also be excluded. To support businesses not eligible for the one-off grants, the Chancellor has also allocated an extra £100 million of Additional Restrictions Grants (ARG) to local authorities, who will have discretion to allocate ARG funds.
"In addition to the grants, the government has confirmed that SMEs can claim back the cost of Statutory Sick Pay for Covid-19 related absences.
"If the Chancellor's announcement contained a hint that the government expects pubs and restaurants to remain open, the measures are far short of what businesses need. The grants are meagre and there isn't certainty about when they will be disbursed. Whether a pub or restaurant can remain open depends on its ability to sustain cashflow and that means the funds must be made available as soon as possible. Local authorities have not yet received detailed guidance on the criteria under which the grants will be made to businesses."
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