Hospitality Industry and Tourism: Coronavirus

Treasury written question – answered on 11th February 2022.

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Photo of Mark Menzies Mark Menzies Conservative, Fylde

To ask the Chancellor of the Exchequer, what steps his Department is taking to continue to support the hospitality and tourism sector in its recovery from the Omicron covid-19 variant and related disruption.

Photo of Helen Whately Helen Whately The Exchequer Secretary

In December 2021 the government announced a £1bn package of support for businesses impacted by the Omicron variant. This included cash grants of up to £6,000 to support eligible businesses in the hospitality and leisure sectors, totaling nearly £700 million, open until the end of March 2022.

This is just the latest action taken, and adds to an already comprehensive package of measures intended to support the recovery of sectors most impacted, including:

  • A reduced rate of 12.5% VAT on hospitality and tourism services.
  • Business rates bills cut by 75% over 2021-22, and a further 50% relief in 2022-23, for over 90% of eligible businesses in the hospitality and leisure sectors.
  • A freeze to the business rates multiplier in 2022-23, worth £4.6bn.
  • The Recovery Loan Scheme, which has been extended to 30 June 2022, providing SMEs with up to £2 million of government guaranteed finance.

It is thanks to the Government’s decisive action to implement balanced and proportionate measures in response to the Omicron variant, that Cabinet has decided to return to Plan A in England. This means the economy will get back to operating freely and businesses, including those in the hospitality and tourism sector, can recover more quickly.

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