UK chancellor Rishi Sunak has announced additional funding for the accommodation sector.
This included grants for hotels, which are not legally required to close under Tier Three restrictions.
Sunak said: “I’ve always said that we must be ready to adapt our financial support as the situation evolves, and that is what we are doing today. These changes mean that our support will reach many more people and protect many more jobs."
When originally announced, the job support scheme – which will come into effect on 1 November – saw employers paying a third of their employees’ wages for hours not worked, and required employers to be working 33% of their normal hours.
The announcement reduces the employer contribution to those unworked hours to 5%, and reduces the minimum hours requirements to 20%, so those working one day a week will be eligible.
The Chancellor has also announced approved additional funding to support cash grants of up to £2,100 per month primarily for businesses in the hospitality, accommodation and leisure sector who may be adversely impacted by the restrictions in high-alert level areas. These grants will be available retrospectively for areas who have already been subject to restrictions,
UKHospitality CEO Kate Nicholls said: “This is a hugely generous package of support and very welcome news just when we needed it. The changes to the Job Support Scheme will help to safeguard hundreds of thousands of jobs and the grant support will provide a crucial lifeline for businesses struggling with low footfall and ongoing costs. It is excellent that the grant has been backdated to the date when the restrictions began to bite.
“This gives businesses a much-enhanced chances of being able to overcome the challenges and survive into 2021, to sustain businesses so they can begin to recover next year and play a vital role in helping boost the economy.
“It is encouraging to see the government listening to and understanding the plight of hospitality, which is dire. We are pleased to see that the measures extend to hotels and B&Bs, too.
“It is important now that grants are processed as quickly as possible as businesses are on the brink after weeks of curfew and severe restrictions.”