Chancellor Rishi Sunak announces additional funding for the retail, leisure, and hospitality sectors

Chancellor Rishi Sunak announces additional funding for the retail, leisure, and hospitality sectors

By Published On: 5 January 2021Categories: News

Rishi Sunak has announced a further £4.6 billion in new lockdown grants to support those businesses within the retail, leisure, and hospitality sectors, by giving them a one-off grant worth up to the value of £9,000.

Help has also been provided in the form of a £594 million discretionary fund made available to support other impacted businesses, and to offer support through to the spring time. This comes in addition to the £1.1 billion further discretionary grant funding for Local Authorities, Local Restriction Support Grants worth up to £3,000 a month and extension of the furlough scheme.

Why has the grant been provided?

The grant follows Boris’ announcement on January 4th that the UK will enter its third national lockdown. The grant is expected to benefit over 600,000 business properties, and will be worth over £4 billion in total across the whole of the UK.

Chancellor Sunak said:

“The new strain of the virus presents us all with a huge challenge – and whilst the vaccine is being rolled out, we have needed to tighten restrictions further.

Throughout the pandemic we’ve taken swift action to protect lives and livelihoods and today we’re announcing a further cash injection to support businesses and jobs until the Spring.

This will help businesses to get through the months ahead – and crucially it will help sustain jobs, so workers can be ready to return when they are able to reopen.”

Further information

The one-off top-up grant will be given to closed businesses as follows:

  • £4,000 for businesses with a rate value of £15,000 or below
  • £6,000 for businesses with a rate value from £15,000 to £51,000
  • £9,000 for businesses with a rate value above £51,000

How can Vantage Accounting help?

It’s a tough time for everyone at the moment, and dealing with your businesses accountancy needs is a stress you could do without. Get in touch with our expert team here at Vantage, your local friendly accountant, and let us help make your life that little bit easier.

Note: All the information and advice in this blog post was correct at the time of writing.

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