Further UK Government Coronavirus Funding Announcements

The UK Chancellor of the Exchequer, Rishi Sunak, has announced details of new funding to help support businesses currently most affected due to the continuing Coronavirus Pandemic and the Omicron variant: –

• The UK Government will also cover the cost of Statutory Sick Pay for Covid-related absences for small and medium-sized employers across the UK

SSPRS Dec 2021.pdf

• Businesses in the hospitality and leisure sectors in England will be eligible for one-off grants of up to £6,000 per premises

• £100 million of discretionary funding will be made available for local authorities to support other businesses in England via the Additional Restrictions Grant (ARG) fund

• £30 million of funding will be made available through the Culture Recovery Fund, enabling more cultural organisations in England, to support organisations such as theatres, orchestras and museums, to apply for support during the winter

This funding is in addition to the support measures already in place which include: –

 UK Businesses

• a 12.5% reduced rate of VAT for hospitality and tourism until the end of March 2022

• access to finance for SMEs through the Recovery Loan Scheme to June 2022

• Bounce Back Loan repayment flexibility, with borrowers having the option to take a 6-month repayment holiday, three 6-month interest only periods or extend their loan to 10 years which almost halves the monthly payment

• HMRC stand ready to support any business impacted by the Coronavirus pandemic through its Time to Pay arrangement. The Chancellor has asked HMRC to offer businesses in the hospitality and leisure sectors in particular the option of a short delay and payment in instalments, on a case-by-case basis, as part of this.

English Businesses

• business rates relief meaning that the majority of businesses in the hospitality and leisure sectors will see a 75% reduction in their business rates bill across the entire financial year and a new 50% capped business rates relief next financial year

• the £1.5 billion Covid Additional Relief Fund for businesses that have not previously had business rates support

• businesses will be protected from eviction if they are behind on rent on their premises, thanks to the moratorium in place until March 2022

• support for the aviation and travel sectors, including over £12 billion since the beginning of the pandemic, and the Airport and Ground Operations Support Scheme (AGOSS) until the end of March 2022

For details of the funds available to Scottish businesses and organisations please see our other blogs: –

https://jsca.co.uk/coronavirus-covid-19-december-and-january-business-support-top-up-hospitality/

https://jsca.co.uk/the-december-and-january-top-up-fund/

More information about today’s UK Government funding announcements can be found in the following links:-

https://www.gov.uk/government/news/1-billion-in-support-for-businesses-most-impacted-by-omicron-across-the-uk

English Local authority grants.pdf

Photo by Fabioderby

The information in this blog provides only an overview of HMRC and UK Government guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.