UKHospitality (UKH) said the grants would help the sector survive in the coming months, with beer gardens allowed to reopen from 12 April and indoor service to resume from 17 May.
The news comes ahead of Chancellor Rishi Sunak’s Budget on Wednesday 3 March, where he will set out his plans to save jobs and revive the economy.
Grant amounts will depend on a site’s rateable value, The Morning Advertiser (MA) understands.
Properties with a rateable value of £15,000 or under will receive £8,000 while those with a value between £15,000 and £51,000 will receive £12,000. Pubs with a rateable value of £51,000 or over will receive £18,000.
A further £425m has been added to the Additional Restrictions Grant (ARG) fund to help businesses not receiving the grants.
UKH chief executive, Kate Nicholls, said: “This announcement is great news for hospitality businesses that have been struggling to see how they could survive through to the Prime Minister’s reopening dates.
“Cash reserves have been severely depleted after a year of closure and restrictions and these grants are a very welcome boost, putting the sector in a better place to restart."
UKH asked the Government to declare the grants will not be subject to EU State Aid rules.
Businesses must be paid swiftly, UKHospitality added, referencing previous incidences of pubs having to wait months to receive funds.
Nicholls said: “It is absolutely critical that the grant funding is put into the hands of hospitality business owners as quickly as possible. Businesses are crying out for the cash now so there can be no further delays which might make it too late for some.”
Speedy payments needed
The grants will be delivered through local authorities and will receive funding in April with the aim of paying businesses as soon as possible, The MA understands.
More than half of grants that were announced to support pubs in the second lockdown still had not been paid last month (January,) The MA reported.
What’s more, 46% of surveyed operators said they were yet to receive the Local Restrictions Support Grants that were available for licensees amid the tier measures, as of January 2021.
Operators also faced delays with the first lot of coronavirus support grants back in the first national lockdown of spring 2020.
The new grants will be part of a £5bn Restart scheme, with funding also available to shops, gyms and hair salons, according to The Sunday Telegraph.
UKH reiterated calls for the Chancellor to announce a wider package of support next week, including an extension of the VAT cut and business rates holiday.
Chancellor Sunak announced grants of up to £9,000 for pubs at the beginning of England's third lockdown but faced criticism from the trade for not going further.