£700 million for local authorities to help businesses

Businesses in England most impacted by the Omicron variant will be able to tap into a multimillion-pound support package, thanks to new funding delivered to councils.

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.

Additionally, more than £100 million worth of discretionary funding is also being made available for local authorities to support other businesses. 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 five per cent left over from previous ARG funding rounds, instructing them to disburse their remaining funding.

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.

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.”