Hospitality Industry: Coronavirus

Department for Business, Energy and Industrial Strategy written question – answered on 12th February 2021.

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Photo of Steve Double Steve Double Conservative, St Austell and Newquay

To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to his department's guidance, Check if your business is eligible for a coronavirus grant due to national restrictions (for closed businesses), updated on 21 January 2021, when he plans to publish further guidance on subsidy rules which may affect hospitality businesses.

Photo of Paul Scully Paul Scully Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy), Minister of State (London)

The EU State Aid rules and limits no longer apply in the UK, except in respect of aid in scope of the Northern Ireland Protocol. Subsidies must instead meet the terms of the EU-UK Trade and Co-operation Agreement as well as the other Free Trade Agreements we have reached with the rest of the world and our WTO commitments.

Existing guidance for Covid-19 Business Support grants which references pre-existing EU State Aid limits have been rolled forward until such point as a new domestic subsidy approach is agreed. The government is currently consulting on its proposed approach for establishing a bespoke UK-wide subsidy control regime.

The government is keeping under close review the impact of subsidy control rules on the ability of businesses in the hospitality sector to access grants, and will publish new guidance as and when circumstances require it.

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