Cash grants for 'open but struggling' tier 2 pubs

By Emily Hawkins contact

- Last updated on GMT

Three new measures: Chancellor Rishi Sunak announced new support for those hit by tier two restrictions (image: Pippa Fowles / No 10 Downing Street via Flickr)
Three new measures: Chancellor Rishi Sunak announced new support for those hit by tier two restrictions (image: Pippa Fowles / No 10 Downing Street via Flickr)

Related tags: Legislation, lockdown, Coronavirus, Health and safety, London, Essex, Manchester, Nottingham, York

Chancellor Rishi Sunak has outlined additional support measures for tier two pubs, including cash grants for "open but struggling" businesses.

Hospitality representatives had told Sunak that they were facing difficult reductions in trade after the introduction of measures banning different households from socialising indoors.

Following an announcement from the Chancellor, however, pubs will be able to access a grant worth up to £2,100 for every month tier two restrictions have applied.

These grants delivered by local authorities and will be retrospective, meaning any area that has been under enhanced restrictions can have a grant backdated to August.

Wages subsidy 

Changes will be made to the Job Support Scheme for businesses experiencing lower demand. Pub staff will only need to work one day a week to be eligible and the Government will significantly reduce the amount employers have to contribute.

Instead of a minimum requirement of paying 55% of wages for a third of hours, pubs will have to pay for a minimum of 20% of usual hours worked, and 5% of hours not worked.

The Government will now fund 62% of the wages for hours not worked, more than doubling the maximum payment to £1,541.75.

Profound uncertainty 

Sunak said he was also doubling the value of grants for people who are self-employed.

"It is clear that even businesses that can stay open are facing profound uncertainty," he said.

Publicans in tier two areas - which include London and Essex - had told The Morning Advertiserthey felt they would be better off closed.

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Related topics: Legislation

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