[UK] Chancellor announces cash support for firms hit by tier 2 restrictions

UK Chancellor Rishi Sunak has unveiled new support for firms who have suffered a drop in trade as a result of COVID-19 restrictions in tier 2 “high” risk areas of England. Firms in the “high” alert level will be eligible for cash grants of up to £2,100. The changes will primarily benefit the hospitality, accommodation and leisure sectors, Mr Sunak said.

The new measures announced include a £2,100 per month grant to hospitality, accommodation and leisure businesses, forming part of a £13bn package to support the economies of areas under tier 2 restrictions. 

The grants will be backdated to August and given to up to 150,000 businesses in England - including restaurants, hotels and B&Bs - which are not legally required to close but have lost business as a result of localised restrictions. The backdating allows areas of the north and midlands put in local lockdown over recent months to benefit.

The chancellor also doubled the value of upcoming grants for the self-employed from 20 per cent to 40 per cent of average profits, increasing their maximum value from £1,875 to £3,750.

Additionally, he reduced the minimum employer’s contribution to the wages of staff unable to work full-time from 33 per cent to 5 per cent while cutting the minimum requirement from 33 per cent to 20 per cent of normal hours. This means people working just one day a week will be eligible.

UK Chancellor Rishi Sunak has unveiled new support for firms who have suffered a drop in trade as a result of COVID-19 restrictions in tier 2 “high” risk areas of England. Firms in the “high” alert level will be eligible for cash grants of up to £2,100. The changes will primarily benefit the hospitality, accommodation and leisure sectors, Mr Sunak said.

The new measures announced include a £2,100 per month grant to hospitality, accommodation and leisure businesses, forming part of a £13bn package to support the economies of areas under tier 2 restrictions. 

The grants will be backdated to August and given to up to 150,000 businesses in England - including restaurants, hotels and B&Bs - which are not legally required to close but have lost business as a result of localised restrictions. The backdating allows areas of the north and midlands put in local lockdown over recent months to benefit.

The chancellor also doubled the value of upcoming grants for the self-employed from 20 per cent to 40 per cent of average profits, increasing their maximum value from £1,875 to £3,750.

Additionally, he reduced the minimum employer’s contribution to the wages of staff unable to work full-time from 33 per cent to 5 per cent while cutting the minimum requirement from 33 per cent to 20 per cent of normal hours. This means people working just one day a week will be eligible.