Budget 2021: How Much Money Will Restaurants and Pubs Receive?
Chancellor Rishi Sunak will use his eagerly anticipated budget on Wednesday March 3rd to announce a new package of “recovery grants” valued at £ 8,000-18,000 per location to support restaurants, pubs, bars and cafes that operate in the to be gradually reopened after the lockdown on April 12th.
The grants are allocated to businesses based on the value of their property: properties with a pro rata value (ie estimated annual rent) of £ 15,000 or less receive £ 8,000; For anyone valued between £ 15,000 and £ 51,000, the grant is £ 12,000. and those valued at £ 51,000 or more are eligible for a grant of £ 18,000.
The ARG (Additional Restrictions Grant) fund has been increased by an additional £ 425 million to help those who are not receiving the grants.
The UK Hospitality lobby group “welcomed the package warmly” and said over the weekend that the support was “critical to business survival”. She thanked the Chancellor with a (further) reminder that more would be needed from the budget if there was to be a “successful revival of hospitality”.
Restaurants and pubs and their representatives agree that in addition to the money, the VAT rate cut must be extended for the rest of the year, as well as the vacation with business tariffs and the vacation wage support system for employees who cannot work as employees the lock.
Kate Nicholls, UK Hospitality General Manager, said: “This announcement is great news for hotel companies that have struggled to see how they can survive until the Prime Minister reopens. Cash reserves have been depleted after a year of closings and restrictions and these grants are a very welcome boost that will move the sector to a better place to restart. ”
Nicholls also stressed the “urgent need” for grants to reach all hospitality businesses as quickly as possible, noting that previous grants had been delayed by “bureaucratic processes”. Companies reported that only 37 percent of the grants announced in January had been paid out a month later.
“It is absolutely critical that grant funding gets into the hands of hospitality owners as soon as possible,” said Nicholls. “Companies are now crying out for cash so there can’t be any further delays that could make it too late for some.”
Like others, Nicholls urged the Chancellor to underpin the cash grants with the structural support measures that are key to survival across the hospitality industry. “While this is a positive move, it needs to be part of a broader package in the budget that includes a 5 percent sales tax extension for a full year and a business vacation vacation through 2021/22,” said Nicholls.
“Without these measures and the full vacation during our reopening, the hospitality industry’s recovery will be slowed, along with our ability to fight unemployment through job creation.”