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| Covid: Chancellor announces £1bn fund for businesses | Covid: Chancellor announces £1bn fund for businesses |
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| Watch Rishi Sunak discuss the government's stance on any potential Covid restrictions this Christmas | Watch Rishi Sunak discuss the government's stance on any potential Covid restrictions this Christmas |
| The chancellor has set out a £1bn fund to help businesses hit by the rise in Covid cases, including the leisure and hospitality sector. | The chancellor has set out a £1bn fund to help businesses hit by the rise in Covid cases, including the leisure and hospitality sector. |
| Rishi Sunak announced details of the fund, including cash grants of up to £6,000 per premises for each eligible firm. | |
| He said the government would also help certain firms with the cost of sick pay for Covid-related absences. | He said the government would also help certain firms with the cost of sick pay for Covid-related absences. |
| The chancellor also announced an extra £30m to help theatres and museums. | The chancellor also announced an extra £30m to help theatres and museums. |
| He said the "generous" new support recognised the situation many hospitality and leisure businesses faced in the run-up to Christmas. | He said the "generous" new support recognised the situation many hospitality and leisure businesses faced in the run-up to Christmas. |
| Many hospitality and leisure firms have been hit by a collapse in bookings and reduced footfall as a result of fears over the spread of the Omicron variant. | |
| Some industry figures have welcomed what they described as "unprecedented" support, but others said the measures do not go far enough. | Some industry figures have welcomed what they described as "unprecedented" support, but others said the measures do not go far enough. |
| Businesses other than hospitality and leisure can apply for some of the funding. | Businesses other than hospitality and leisure can apply for some of the funding. |
| However, the chancellor wouldn't be drawn on whether further help would come should further restrictions be announced, as ministers come under pressure to tackle the rapid rise of the Omicron variant. | However, the chancellor wouldn't be drawn on whether further help would come should further restrictions be announced, as ministers come under pressure to tackle the rapid rise of the Omicron variant. |
| On Monday, a further 91,743 Covid cases were reported across the UK - the second highest daily total on record. | On Monday, a further 91,743 Covid cases were reported across the UK - the second highest daily total on record. |
| LIVE: Businesses offered cash as Omicron fears take hold | LIVE: Businesses offered cash as Omicron fears take hold |
| Sick pay rebate scheme is reopened for small firms | Sick pay rebate scheme is reopened for small firms |
| Businesses plead for help as customers cancel bookings | Businesses plead for help as customers cancel bookings |
| Asked if more support would be offered, the chancellor said he would "always respond proportionately and appropriately to the situation we face". | Asked if more support would be offered, the chancellor said he would "always respond proportionately and appropriately to the situation we face". |
| But he added he thought the measures announced today were comparable to the grants that were on offer when businesses were fully closed earlier this year. | But he added he thought the measures announced today were comparable to the grants that were on offer when businesses were fully closed earlier this year. |
| He highlighted support that is already in place that will last through to next spring, citing a reduced rate of VAT for the tourism and hospitality sectors and a discount on business rates. | He highlighted support that is already in place that will last through to next spring, citing a reduced rate of VAT for the tourism and hospitality sectors and a discount on business rates. |
| But, challenged on whether he could rule out any more Covid rules before New Year, he said he understood people's frustrations but the UK faced a very uncertain situation over Omicron. | But, challenged on whether he could rule out any more Covid rules before New Year, he said he understood people's frustrations but the UK faced a very uncertain situation over Omicron. |
| Why more Omicron restrictions may cause harm | Why more Omicron restrictions may cause harm |
| What are the new Covid rules across the UK? | What are the new Covid rules across the UK? |
| Echoing Prime Minister Boris Johnson's comments on Monday, Mr Sunak said ministers were keeping the situation under review and monitoring the data "day-by-day, hour by hour" but ruling nothing out. | Echoing Prime Minister Boris Johnson's comments on Monday, Mr Sunak said ministers were keeping the situation under review and monitoring the data "day-by-day, hour by hour" but ruling nothing out. |
| But Labour's shadow Treasury minister Pat McFadden described Mr Sunak's announcement as "a holding package from a government caught in a holding position". | But Labour's shadow Treasury minister Pat McFadden described Mr Sunak's announcement as "a holding package from a government caught in a holding position". |
| Mr McFadden said the support was "welcome" but that it should have been announced last week week when MPs voted to pass the government's Plan B measures. | Mr McFadden said the support was "welcome" but that it should have been announced last week week when MPs voted to pass the government's Plan B measures. |
| Instead, he said, "it has only happened after the chancellor was dragged back from California to focus on the plight facing businesses and workers here in the UK". | Instead, he said, "it has only happened after the chancellor was dragged back from California to focus on the plight facing businesses and workers here in the UK". |
| Shevaun Haviland, director general of the British Chambers of Commerce, said the new support would provide "welcome respite" to many firms affected by Covid measures, but warned that more could be needed if restrictions persist or are tightened. | Shevaun Haviland, director general of the British Chambers of Commerce, said the new support would provide "welcome respite" to many firms affected by Covid measures, but warned that more could be needed if restrictions persist or are tightened. |
| She said: "We are pleased that the chancellor heard our call for additional grant funding for hospitality and leisure businesses," adding that "clarity and speed" would be paramount to ensure grants are paid out quickly to help firms. | She said: "We are pleased that the chancellor heard our call for additional grant funding for hospitality and leisure businesses," adding that "clarity and speed" would be paramount to ensure grants are paid out quickly to help firms. |
| Support as good as it gets for now | Support as good as it gets for now |
| In the past, government support has been extended when government policy has restricted businesses ability to trade - so this is an important recognition that consumer caution can be almost as damaging as mandatory closure. | In the past, government support has been extended when government policy has restricted businesses ability to trade - so this is an important recognition that consumer caution can be almost as damaging as mandatory closure. |
| The question then is - is this it? | The question then is - is this it? |
| The chancellor said that the government has always responded when necessary but he was also at pains to point out that this level of grant funding was similar in generosity to those given during lockdown. | The chancellor said that the government has always responded when necessary but he was also at pains to point out that this level of grant funding was similar in generosity to those given during lockdown. |
| A hint perhaps that this is as good as it gets - for grant funding at least. | A hint perhaps that this is as good as it gets - for grant funding at least. |
| Business groups have welcomed today's move, but are clear that plenty of hardship lies ahead in the next year when business rates bills (albeit discounted) come due and the VAT discount wear of on 1 April. | Business groups have welcomed today's move, but are clear that plenty of hardship lies ahead in the next year when business rates bills (albeit discounted) come due and the VAT discount wear of on 1 April. |
| The British Chambers of Commerce and others would like to see a sector specific furlough scheme if firms are forced to close their doors. | The British Chambers of Commerce and others would like to see a sector specific furlough scheme if firms are forced to close their doors. |
| Perhaps most crushing of all for business confidence is the ongoing uncertainty, and with Covid-19 that is something over which the chancellor has little control. | Perhaps most crushing of all for business confidence is the ongoing uncertainty, and with Covid-19 that is something over which the chancellor has little control. |
| Kate Nicholls, chief executive of UK Hospitality, said her organisation had had "constructive engagement and dialogue" with the chancellor and other government ministers and welcomed the "unprecedented support" announced by Mr Sunak. | Kate Nicholls, chief executive of UK Hospitality, said her organisation had had "constructive engagement and dialogue" with the chancellor and other government ministers and welcomed the "unprecedented support" announced by Mr Sunak. |
| But Michael Kill, chief executive of the Night Time Industries Association, said "mixed" government messaging and further restrictions had had a "catastrophic impact" on nightclubs and other late-night venues over the past two weeks. | But Michael Kill, chief executive of the Night Time Industries Association, said "mixed" government messaging and further restrictions had had a "catastrophic impact" on nightclubs and other late-night venues over the past two weeks. |
| He described the chancellor's support package as "far too little" and that it bordered "on the insulting" in the face of failing businesses, lost livelihoods, and a "crippled" industry. | He described the chancellor's support package as "far too little" and that it bordered "on the insulting" in the face of failing businesses, lost livelihoods, and a "crippled" industry. |
| Meanwhile other business owners have urged the government to provide certainty about the Covid situation, rather than handouts. | |
| Nathan Godley, of restaurant supply firm Premier Seafoods in Grimsby, in Lincolnshire, said that that, while he did not qualify for or want government support, he wanted certainty so he could plan orders in advance and avoid losing money or stock. | |
| He told BBC Radio 4's World at One there had been a drop in orders from restaurants in the last week as people cancelled bookings or plans to dine out, and that he would have to make "contingency plans" to preserve and freeze the fish until it could be sold in the new year. | |
| Meanwhile, the UK's devolved nations have already announced extra measures to combat the surge of the Omicron variant: | |
| In Wales, spectators will be banned from all sports events in Wales from 26 December, nightclubs will close from 27 December and social distancing will return in shops and workplaces after Christmas. | |
| In Scotland, First Minister Nicola Sturgeon has announced a series of new measures, including asking people to limit social contact to two other households either side of Christmas and telling shops and businesses to take measures to limit the spread of Covid. | |
| In Northern Ireland, there is a limit of 30 on people mixing from different households in homes, face coverings are compulsory in shops and other venues and a Covid passport is needed to enter nightclubs, bars and cinemas. | |
| With just four days until Christmas, people are looking forward to spending the festive season with loved ones after many missed out last year, when restrictions were brought in just before Christmas. | With just four days until Christmas, people are looking forward to spending the festive season with loved ones after many missed out last year, when restrictions were brought in just before Christmas. |
| Last week, Mr Johnson advised people to "think carefully before you go" out to socialise. England's chief medical officer Prof Chris Whitty also urged people not to "mix with people you don't have to". | Last week, Mr Johnson advised people to "think carefully before you go" out to socialise. England's chief medical officer Prof Chris Whitty also urged people not to "mix with people you don't have to". |
| BBC political correspondent Damian Grammaticas said it now seemed unlikely that new restrictions could be enacted in England before Christmas. | BBC political correspondent Damian Grammaticas said it now seemed unlikely that new restrictions could be enacted in England before Christmas. |
| But hospitality and entertainment businesses were facing critical decisions in the coming hours about whether to go ahead with or cancel events over the holiday period, he added. | But hospitality and entertainment businesses were facing critical decisions in the coming hours about whether to go ahead with or cancel events over the holiday period, he added. |
| The government support being extended to businesses comes from two existing grant schemes administered by local authorities. | The government support being extended to businesses comes from two existing grant schemes administered by local authorities. |
| Hospitality and leisure firms can apply for help from the mandatory grants scheme, which has benefitted from the new money announced by the chancellor to make a total pot of £683m. | Hospitality and leisure firms can apply for help from the mandatory grants scheme, which has benefitted from the new money announced by the chancellor to make a total pot of £683m. |
| Under existing council-run schemes, restaurants, bars, cinemas and theatres can apply for a maximum grant of £6,000 for each of their premises. | Under existing council-run schemes, restaurants, bars, cinemas and theatres can apply for a maximum grant of £6,000 for each of their premises. |
| Local councils can also dispense an additional restrictions grant - with a total fund of £102m - to businesses outside leisure and hospitality at their own discretion. | Local councils can also dispense an additional restrictions grant - with a total fund of £102m - to businesses outside leisure and hospitality at their own discretion. |
| This means that any business, including suppliers of hospitality or leisure business, could apply for this money. | This means that any business, including suppliers of hospitality or leisure business, could apply for this money. |
| Meanwhile, the Statutory Sick Pay Rebate scheme is available to any business with fewer than 250 employees. | Meanwhile, the Statutory Sick Pay Rebate scheme is available to any business with fewer than 250 employees. |
| The UK's devolved administrations will receive £154m of Barnett funding to cover all three schemes, with around £80m for Scotland, £50m for Wales and £25m for Northern Ireland. | The UK's devolved administrations will receive £154m of Barnett funding to cover all three schemes, with around £80m for Scotland, £50m for Wales and £25m for Northern Ireland. |
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