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

£120m financial support for businesses in Wales impacted by Omicron

Businesses in Wales impacted by the rapid spread of the Omicron virus will be eligible for emergency financial support under a new Welsh Government support package.

The Economy Minister, Vaughan Gething, has announced the details of the £120m funding which will be available for retail, hospitality, leisure and tourism business and their supply chains affected by the move to alert level two, as announced by the First Minister on Wednesday 22 December.

Under the latest package, retail, hospitality, leisure and tourism business who pay Non Domestic Rates will be entitled to a payment of £2,000, £4,000 or £6,000 depending on their rateable value. Businesses will need to re-register their details, through a quick and easy online process, with their local authority in order to receive their payments. Registration will open via local authority websites from the WC 10^th of January

The Welsh Government has decided to extend this support to non-essential retail so that smaller shops, and Travel Agents will be supported and our high streets can continue to thrive. In England, support is not available to non-essential retail.

In addition, impacted hospitality and leisure businesses and their supply chains will be able to apply for top up funding from a new Economic Resilience Fund (ERF). Eligible businesses can apply for grants of between £2,500k – £25,000, with grants dependant on their size and number of employees. The application window for ERF will open in week commencing 17^th January 2022 with payments starting to reach businesses within days.

Local Authorities will also administer a Discretionary fund for business and sole traders who do not pay rates. The fund will provide £500 to sole trader and freelancers and £2,000 to employing businesses in impacted sectors.  Further details to follow on business.wales.

An eligibility checker which will help businesses to gage how much they can expect to receive under the new support package will be available on the Business Wales website by the start of 2022.

Economy Minister, Vaughan Gething, said:

“We fully understand the continued challenges faced by businesses, however we are facing a very serious situation in Wales. A wave of infections caused by the new, fast-moving and very-infectious omicron variant is headed our way, this means taking early action to try and control its spread – and limit the impact on Welsh businesses.

“Since the start of the pandemic, we’ve provided over £2.2bn of support to businesses throughout Wales to help them manage their way through difficult circumstances.

“We will continue to monitor the impact of the spread of Omicron on businesses in Wales, and will consider whether additional emergency funding is needed in the new year.”

Business. Wales will be updated with details, frequently asked question and support guidance.

• The £120m package is designed to support businesses impacted by the spread of Omicron through the period from 13^th December to the 14^th This timeframe is linked to the expected impact of Omicron on Welsh businesses. It is not based on the expectation that restrictions will continue into mid –February
• As a result of the new emergency support packages, the Welsh Government is withdrawing its £35m Business Support Fund, announced in November, in order to re-allocate and process emergency payments as soon as possible. All existing offers will of course be honoured.
• A £3m Spectator Sports Fund will also be available to support clubs and sporting venues affected by the new measures to protect public health.
• Discretionary fund – Local authorities will also deliver a £10m discretionary fund via a short application process.  Sole traders, freelancers and taxi drivers will be able to apply for £500 and businesses that employee people but do not pay business rates can apply for £2,000.
• Non Essential Retail Hospitality Leisure and Tourism businesses in receipt of Small Business Rate Relief (SBRR) and with a rateable value of £12,000 or less will be eligible for a £2,000
• Non Essential Retail Hospitality Leisure and Tourism businesses with a rateable value of between £12,001 and £51,000 will be eligible for a £4,000 payment if impacted by the restrictions.
• Non Essential Retail Hospitality Leisure and Tourism businesses with a rateable value of between £51,001 and £500,000 will be eligible for a £6,000 payment if impacted by the restrictions.
• Qualifying supply chain businesses will be eligible for support if they have a greater than 40% reduction in turnover during the restriction period.

From Boxing Day, the alert level two measures will mean:

• A general requirement of 2m social distancing in all premises open to the public and workplaces, where reasonable.
• The rule of six will apply to gatherings in regulated premises, such as hospitality, cinemas and theatres.
• All licensed premises will need to take additional measures to protect customers and staff, including table service and collecting contact details.
• Face coverings will be required in hospitality settings at all times apart from when seated.
• Large events will not be allowed indoors or outdoors. The maximum number of people who can gather at an indoor event will be 30 and 50 outdoors.
• There will be an exception for team sports, up to 50 spectators will be able to gather, in addition to those taking part. There is also an exception for events involving children

£120 miliwn o gymorth ariannol i fusnesau yng Nghymru yr effeithiwyd arnynt gan Omicron

Bydd busnesau yng Nghymru sy’n cael eu heffeithio gan ledaeniad cyflym feirws Omicron yn gymwys i gael cymorth ariannol brys o dan becyn cymorth newydd gan Lywodraeth Cymru.

Mae Gweinidog yr Economi, Vaughan Gething, wedi cyhoeddi manylion y £120 miliwn o gyllid a fydd ar gael ar gyfer busnesau manwerthu, lletygarwch, hamdden a thwristiaeth a’u cadwyni cyflenwi yr effeithiwyd arnynt gan y symudiad i rybudd lefel dau, fel y cyhoeddwyd gan y Prif Weinidog ddydd Mercher 22 Rhagfyr.

O dan y pecyn diweddaraf, bydd gan fusnesau manwerthu, lletygarwch, hamdden a thwristiaeth sy’n talu Ardrethi Annomestig hawl i daliad o £2,000, £4,000 neu £6,000 yn dibynnu ar eu gwerth ardrethol. Bydd angen i fusnesau ailgofrestru eu manylion, drwy broses ar-lein gyflym a hawdd, gyda’u hawdurdod lleol er mwyn derbyn eu taliadau. Bydd cofrestru ar agor drwy wefannau awdurdodau lleol o’r wythnos sy’n cychwyn ar y 10fed o Ionawr.

Mae Llywodraeth Cymru wedi penderfynu ymestyn y cymorth hwn i fanwerthu nad yw’n hanfodol fel y bydd siopau llai, a Chwmnïau Teithio yn cael eu cefnogi ac y gall ein stryd fawr barhau i ffynnu. Yn Lloegr, nid oes cymorth ar gael i fanwerthu nad yw’n hanfodol.

Hefyd, bydd busnesau lletygarwch a hamdden yr effeithir arnynt a’u cadwyni cyflenwi yn gallu gwneud cais am gyllid ychwanegol gan Gronfa Cadernid Economaidd newydd. Gall busnesau cymwys wneud cais am grantiau rhwng £2,500 – £25,000, gyda’r grantiau yn dibynnu ar faint y cwmni a nifer y gweithwyr. Bydd y cyfnod ymgeisio ar gyfer y Gronfa Cadernid Economaidd yn agor yn ystod yr wythnos sy’n cychwyn ar 17 Ionawr 2022 gyda thaliadau’n dechrau cyrraedd busnesau o fewn dyddiau.

Bydd Awdurdodau Lleol hefyd yn gweinyddu cronfa Ddewisol ar gyfer busnesau ac unig fasnachwyr nad ydynt yn talu ardrethi. Bydd y gronfa’n darparu £500 i unig fasnachwyr a gweithwyr llawrydd a £2,000 i fusnesau sy’n cyflogi mewn sectorau yr effeithir arnynt.  Mae rhagor o fanylion i ddilyn ar busnes.cymru.

Bydd gwiriwr cymhwysedd a fydd yn helpu busnesau i nodi faint y gallant ddisgwyl ei gael o dan y pecyn cymorth newydd ar gael ar wefan Busnes Cymru erbyn dechrau 2022.

Meddai Gweinidog yr Economi, Vaughan Gething:

“Rydym yn deall yn iawn yr heriau parhaus sy’n wynebu busnesau, ond rydym yn wynebu sefyllfa ddifrifol iawn yng Nghymru. Mae ton o heintiau a achosir gan yr amrywiolyn Omicron newydd, sy’n symud yn gyflym ac sy’n heintus iawn ar y ffordd atom, mae hyn yn golygu cymryd camau cynnar i geisio rheoli ei ledaeniad – a chyfyngu ar yr effaith ar fusnesau Cymru.

“Ers dechrau’r pandemig, rydym wedi darparu dros £2.2bn o gymorth i fusnesau ledled Cymru i’w helpu i lywio eu ffordd drwy amgylchiadau anodd.

“Byddwn yn parhau i fonitro effaith lledaeniad Omicron ar fusnesau yng Nghymru, a byddwn yn ystyried a oes angen cyllid brys ychwanegol yn y flwyddyn newydd.”

Bydd Busnes. Cymru yn cael ei ddiweddaru gyda manylion, cwestiynau cyffredin a chanllawiau cymorth.

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

ADDITIONAL support will be available for businesses who have been impacted by the Omicron variant, the Chancellor, Rishi Sunak announced today (21 December).

Recognising that the rise of the Omicron variant means some businesses are likely to struggle over the coming weeks, the government is providing one-off grants of up to £6,000 per premises for businesses in the hospitality and leisure sectors in England.

At what is often their most profitable time of year, many pubs and restaurants have seen cancellations and reduced footfall as people have responded to the rise in cases ahead of Christmas, with Hospitality UK reporting that many businesses have lost 40-60% of their December trade, often their most profitable month.

Around 200,000 businesses will be eligible for business grants which will be administered by local authorities and will be available in the coming weeks.

Given the uncertain situation faced by businesses, the government has chosen to provide generous grants, which are equivalent to the monthly cash grants provided to hospitality businesses when they were fully closed earlier this year, despite businesses now being still able to trade.

The effectiveness of government policies to support the economy through the pandemic and the success of businesses in learning to adapt means the economy is in a different place now than it was at the start of the crisis.                      

Many businesses have more cash in the bank than they did at the start of the pandemic and net cash deposits for all hospitality businesses have risen by £7 billion (40%), while small and medium-sized businesses in the hospitality sector have seen their cash deposits rise by £2 billion (79%).

Fewer businesses have become insolvent, with insolvencies running 25% lower than pre-pandemic in hospitality, and vacancies are 50% above pre-pandemic levels.

Prime Minister, Boris Johnson said:

“With the surge in Omicron cases, people are rightly exercising more caution as they go about their lives, which is impacting our hospitality, leisure and cultural sectors at what is typically the busiest time of the year.

“That’s why we’re taking immediate action to help with an extra £1 billion in grants to these industries and reintroducing our Statutory Sick Pay Rebate Scheme.

“I urge people across the country to please get boosted now to secure vital protection for yourselves, your loved ones and your communities.”

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.”

To support other businesses impacted by Omicron – such as those who supply the hospitality and leisure sectors – the government is also giving a more than £100 million boost 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 ARG top up will be prioritised for those local authorities that have distributed the most of their existing allocation. This is on top of the £250 million of previously allocated funding that remains with local authorities.

As increasing numbers of Covid-19 cases means more workers taking time off work, the government is also reintroducing the Statutory Sick Pay Rebate Scheme (SSPRS).

The SSPRS will help small and medium-sized employers – those with fewer than 250 employees – by reimbursing them for the cost of Statutory Sick Pay for Covid-related absences, for up to 2 weeks per employee. Firms will be eligible for the scheme from today and they will be able to make claims retrospectively from mid-January.

To provide continued support to the cultural sector, £30 million further funding will be made available through the Culture Recovery Fund to support organisations such as theatres, orchestras and museums through the winter to March 2022.

This figure will build on nearly £240 million of cultural grant support already allocated this financial year or currently available for organisations to bid for.

Over the course of the pandemic the UK Government has provided nearly £2 billion to support our vital cultural sector, with the original £1.57 billion round of the Culture Recovery Fund announced in July 2020.

The UK Government is working closely with counterparts in the devolved administrations and businesses across all parts of the UK.  

As part of this support announced today, the devolved administrations will receive around £150 million of funding through the Barnett formula, comprising around £80 million for the Scottish Government, £50 million for the Welsh Government and £25 million for the Northern Ireland Executive.

This contributes towards the £860 million of further funding announced by the UK Government in the last week to support the devolved administrations, allowing them to provide additional support to businesses in Scotland, Wales and Northern Ireland as they see fit.

These additional measures will reinforce the existing package of business support, including:

• business rates relief meaning that the majority of businesses in the hospitality and leisure sectors will see a 75% reduction in their business rates bill across the entire financial year and a new 50% capped business rates relief next financial year;
• a 12.5% reduced rate of VAT for hospitality and tourism to support the cash flow and viability of around 150,000 businesses and protect over 2.4 million jobs, until the end of March;
• the £1.5 billion Covid Additional Relief Fund for businesses that have not previously had business rates support;
• businesses will be protected from eviction if they are behind on rent on their premises, thanks to the moratorium in place until March 2022;
• access to finance for SMEs through the Recovery Loan Scheme to June; and
• Bounce Back Loan repayment flexibility, with borrowers having the option to take a 6 month repayment holiday, three 6 month interest only periods or extend their loan to 10 years, which almost halves the monthly payment.
• support for the aviation and travel sectors, including over £12 billion since the beginning of the pandemic, and the Airport and Ground Operations Support Scheme (AGOSS) until the end of March 2022.
• HMRC stand ready to support any business impacted by the coronavirus pandemic through its Time to Pay arrangement, and the Chancellor has asked them to offer businesses in the hospitality and leisure sectors in particular the option of a short delay, and payment in instalments, on a case by case basis, as part of this.

Sector Response

Kate Nicholls OBE, Chief Executive, UKHospitality said:

“The decline in trade at this critical period for the hospitality sector has been catastrophic so we are extremely grateful that the Chancellor has recognised this and come forward with a generous package of support. This will help businesses to stay afloat and preserve jobs.”

Karen Jones CBE, Executive Chair, PREZZO; Chair, Hawksmoor; Chair, Mowgli; Co-chair, Hospitality Sector Council said:

“ Hospitality has suffered deep financial impacts from cancellations in its busiest trading month of the year. The grants and SSP support announced today will help to compensate for some of that lost trade and will hopefully give confidence to owners and operators to keep going. It’s a tough time following on nearly two years of restrictions and lockdowns for the sector and we want to continue to do what we do best: look after our teams and our customers and support the communities and high streets in which we live. The Chancellor has listened to this and for that we thank him.”

Shevaun Haviland, Director General of the British Chambers of Commerce, said: 

“These measures will provide some welcome respite to many of those businesses who have been hit hardest by the latest Covid measures.  

“The Chancellor and his team have engaged with us in talks over the past week, considered the experiences of Chamber business communities and the proposals we put to them.  

“We are pleased that the Chancellor heard our call for additional grant funding for hospitality and leisure businesses, which will provide some much-needed support in the face of this increasingly difficult trading period. Clarity and speed will be needed to ensure that these grants are paid out swiftly to help these hard-pressed firms weather the next few weeks.  

“Whilst these measures are a positive starting point, if restrictions persist or are tightened further, then we would need to see a wider support package, equal to the scale of any new measures, put in place.”

Federation of Small Businesses (FSB) National Chairman Mike Cherry said:

“These positive measures will help alleviate the intense pressures that small firms are currently under, and hopefully arrest a significant decline in confidence over this year.

“With the prospect of one million people sick or self-isolating by January, we encouraged the Chancellor to bring back the COVID statutory sick pay rebate – we’re pleased to see our recommendation taken forward today. 

“This move will reduce stress for small employers up and down the country, helping those who are struggling most with depleted cashflow. It’s vital that small firms – once again up against a massively disrupted festive season – can reclaim the costs of supporting staff.      

“The Government has also rightly taken forward other aspects of our ten-point plan, with £1bn worth of grant support for the hardest-hit sectors, alongside accelerated delivery of the business rates relief fund for supply chains launched months ago.

“The encouragement of HMRC to give as much breathing space as possible to small firms as we head towards tax return season will also come as a relief to many.

“We’ve always said that support needs to move in lockstep with restrictions, and this intervention will help give small businesses confidence that this is the approach Government will be taking.”  

Emma McClarkin, Chief Executive, British Beer and Pub Association said:

“This short-term package of support from the Chancellor is welcome at this extremely challenging time for pubs and brewers. It will be a vital lifeline for many and will help compensate businesses for the dramatically reduced trade already being experienced in the run up to Christmas.

“It will be absolutely essential that the Government continues to monitor and support our sector for the long-term as we ride out the pandemic and into recovery. Ensuring our pubs and brewers continue to have the support they need, including further financial support if further restrictions are introduced, along with a clear timeline for the lifting any such measures. Our overwhelming hope is to remain trading and serving our customers and communities.”

Dr Andy Wood, CEO, Adnams PLC said:

“It is reassuring that once again the Treasury has listened and reacted to the challenges our industry faces and recognises the importance of the hospitality industry which not only supports millions of jobs, businesses and families.”

Dr Roger Barker, Director of Policy at the Institute of Directors, said:

“The Government has responded to industry representations and this targeted support package will be welcome relief to many businesses. The Omicron variant has led to a drop in consumer demand at the worst possible time for some parts of the economy, particularly the hospitality sector. These measures will go some way to protect and compensate those most adversely affected.

“However, with the unwinding of a number of remaining support schemes at the end of Q1 2022, such as the VAT reduction for hospitality and business rates support, businesses also need the reassurance that these measures will now last for longer into 2022.”

Rain Newton-Smith, CBI Chief Economist, said:

“The Chancellor has provided welcome breathing space to boost confidence and provide support for hospitality and leisure businesses to keep their doors open through tough disruption to their crucial winter trading.

“The latest targeted package offers a fair variety of support to help keep businesses open, with new central grants, flexibility on time to pay and sick pay support for SMEs. All this and more will help keep the economy open as we learn to live with the virus.

“That said, the international travel and tourism sector remains disappointingly out of scope despite the heavy toll it has taken for many months and its vital role in enabling international trade and supporting jobs.

“Business stands ready to work in partnership with Government to lift confidence as we head into 2022 and the critical new year booking period. Ramping up mass-testing, lifting international restrictions as soon as possible, and clear, forward guidance for firms will all be crucial to protect jobs and growth.

“But if infection and hospitalisation rates continue to grow across the country, the potential of further measures will weigh on firms. The Government must monitor the situation closely and ensure that any new restrictions go in lock-step with further targeted cashflow support to those firms most in distress across sectors impacted.”