Hospitality Industry: Finance

Question

Over the course of the COVID-19 pandemic the Government has worked closely with the hospitality sector to understand the impact the pandemic has had.

Businesses forced to legally close, including those in the hospitality sector, can currently claim a one-off grant of up to £9,000. This one-off grant comes in addition to the grants worth up to £3,000 for closed businesses, and up to £2,100 per month for impacted businesses once they reopen. The Government has also provided £1.6 billion of Discretionary Grant funding for local authorities to target support to the businesses that are most important to their local economy.

This is in addition to the wide ranging package of support already available, including:

• the Coronavirus Job Retention Scheme which has been extended until April
• Government-backed loans, through the Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBLS), which have been extended until the end of March.
• ‘Pay as You Grow’ options for businesses which have taken out loans through CBILS and BBLS, to make repayments over the long-term;
• A VAT deferral for up to 12 months
• A 12-month business rates holiday for retail, hospitality and leisure businesses
• A moratorium on evictions to protect commercial tenants;
• A reduced rate of VAT (5 per cent) to goods and services supplied by the tourism and hospitality sectors.

The Government keeps all available business support under review and is continuing to collect evidence on the impact of the pandemic on these industries. The Government is committed to working with businesses and representative groups to ensure that support provided is right for this industry and the economy through the long-term.