Businesses affected by Omicron: Over £700 million will be distributed

Businesses affected by Omicron a variant of Covid-19 version in England will benefit from £700 million in government incentives supplied by local councils in the hospitality, leisure, and lodging sectors. Businesses will be able to apply for one-off cash awards of up to £6,000, and are encouraged to contact their local council and apply for assistance.

Businesses in England that are most affected by the Omicron variant will be able to access a multimillion-pound assistance package in the coming weeks, thanks to funds provided to councils throughout the nation by the government on (7 January). Companies in the hospitality, leisure, and lodging industries, many of whom have seen a drop in footfall and increased cancellations as a result of the Omicron variation, will be eligible to apply for one-off awards of up to £6,000 per premises, based on ratable value:

  • Businesses having a rateable value of more than £51,000: £6,000
  • Companies having a taxable worth of £15,000 to £51,000: £4,000
  • £2,667 for firms with a rateable value of £15,000 or less.

Additionally, local governments will have access to more than £100 million in discretionary funds to help other enterprises.

Kwasi Kwarteng, the Business Secretary, stated: We have been at the side of business throughout the epidemic to ensure that they are supported at every level. The expansion of the Omicron strain is posing new obstacles, notably in the hotel and leisure industries, so it’s only fair that we’re responding with a £1 billion emergency aid plan.

I strongly encourage companies to come forward, interact with their local government, and apply for these cash awards, which will assist cover expenses and safeguard employment as we ramp up our efforts to combat and beat this epidemic. The payment is part of a £1 billion package of assistance that also includes an extra £30 million for the Culture Recovery Fund and the reintroduction of the Statutory Sick Pay Rebate Scheme, which reimburses qualified employers for the cost of Statutory Sick Pay for COVID-19 related absences.

The Chancellor of the Exchequer, Rishi Sunak, said: We are aware that the Omicron strain has affected our hotel and leisure sectors, which is why, as we have done throughout the pandemic, we have stepped in to assist. Local governments will be able to give this £1 billion package of assistance to the hundreds of thousands of pubs, restaurants, and theaters that are in need starting today, safeguarding the millions of people who work there.

Businesses are urged to apply for grant funds from their local government, which will be distributed in the following weeks. On GOV.UK, you may look up your local authority. Businesses in the hospitality, leisure, and housing sectors that provide in-person services, where the principal service and activity takes place in a fixed rate-paying premises, are eligible for funding. Enterprises that offer a venue for the consumption and sale of food and drink, those that provide amenities related to leisure and entertainment, and businesses whose primary premise is utilized for vacation housing, for example, fall into this category.

Despite the fact that firms are still free to trade, the government has opted to pay hefty handouts that are the same amount as the monthly cash awards paid to hospitality businesses when they were entirely shuttered earlier this year.

Other businesses affected by Omicron, such as those in the hospitality and leisure industries, as well as those providing personal care services, can apply for grants, with the government allocating more than £100 million to the Additional Restrictions Grant (ARG) fund for local authorities in England. Local governments will have complete discretion in allocating this assistance to the neediest enterprises. Local authorities with more than 5% left over from earlier ARG funding rounds have received a letter from the Business Secretary asking them to disperse their leftover funds.

There are other Covid-19 related articles posted to help you gather more knowledge about the virus and the precautions you should take.

Supplementary information about Businesses affected by Omicron

The £1 billion aid package includes the following items:

  • England will get £635 million in targeted funding for hospitality and leisure firms.
  • An extra £102 million will be added to the Additional Restrictions Grant.
  • The Culture Recovery Fund will get £30 million.
  • All three of the aforementioned are covered by £154 million in Barnett funds.
  • These sums will be supplemented by funds for the Statutory Sick Pay Rebate program.
  • The released factsheets will provide further information.
  • The one-off awards of up to £6,000 are based on rateable value for qualified firms in the hospitality, leisure, and accommodation sectors:
  • Businesses having a rateable value of more than £51,000: £6,000
  • Companies having a taxable worth of £15,000 to £51,000: £4,000
  • £2,667 for firms with a rateable value of £15,000 or less.

This is the third round of financing for the ARG initiative. During Covid-19 pandemic. The most current data on local government payments to companies goes back to November 28, 2021, therefore it doesn’t include any recent expenditure. 88 percent of the funds available previous to this third top-up has been used as of this date. Note that the Omicron Hospitality and Leisure Grant funding allocations were computed using the most recent available data (31 March 2021) on company numbers given by the VOA. On request, numbers per local authority are available.

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