Chancellor Rishi Sunak has announced that hospitality and leisure businesses in tier 2 areas can receive cash grants of up to £2100 a month.
The grants are available for every month a business is in tier 2.
The announcement was a part of a series of measures “in recognition of the challenging times ahead” as the chancellor said he would be “increasing support through the existing Job Support and self-employed schemes, and expanding business grants to support companies in high-alert level areas”.
Some in the sector had been preparing to launch legal action against the government's lockdown restrictions as industry experts predicted that 750,000 jobs could be lost in the hospitality sector by February.
Recently, a petition by Claire Bosi, writer and former spouse of chef Claude Bosi, was also published, calling for a minister for hospitality to “be created for the current, and successive governments”.
The campaigners for the petition state that the UK hospitality industry is “responsible for around three million jobs, generating £130 billion in activity, resulting in £38 billion in taxation”, however “unlike the arts or sports, we do not have a dedicated minister”.
On Twitter, Kate Nicholls, chief executive of the body representing the broad hospitality sector, UKHospitality, said: “Huge and very welcome intervention by the chancellor – JSS scheme evolves significantly to reflect changed circumstances. Sees employer minimum hours of at least 20 per cent and top-up of 5 per cent (down from 55 per cent previously). Just saved hundreds of thousands of jobs in hospitality and supply chain.”
She added: “Crucially securing help for our teams but also giving biz a lifeline to remain viable through continued trading where possible and a quicker and easier return to growth as restrictions ease. Thanks for listening and continuing to support the 3rd largest employer.”