As with the second lockdown in November, there had been some concern pubs wouldn’t be eligible for the grants if they were still operating a business but The MA understands this is not the case.
Chancellor of the Exchequer Rishi Sunak announced yesterday (Tuesday 5 January) pubs could claim grants of up to £9,000, dependent on rateable value amid the third national lockdown.
This followed Prime Minister Boris Johnson’s announcement on Monday (4 January), putting the country into a third lockdown until mid-February in a bid to control the spread of coronavirus.
The new rules became law in the early hours of today (Wednesday 6 January) this morning.
Grant calculations
A further £594m is also being made available for local authorities and the devolved administrations to support businesses not eligible for the grants that could be impacted by the restrictions.
The Treasury said operators should apply to their local authorities.
As with previous funding, the grants are based on rateable value. For pubs with a rateable value of £15,000 or under, the funding is £4,000.
Those with a rateable value of between £15,000 and £51,000 can claim £6,000 and for those with a rateable value of more than £51,000, a grant of £9,000 can be claimed.
The grants were welcomed by the trade but industry bodies called for further financial aid to help pubs survive.
Under fire
Campaign for Real Ale (CAMRA) chairman Nik Antona echoed repeated calls for further financial support for the sector and UKHospitality (UKH) chief executive Kate Nicholls cautiously welcomed the funding.
Beer & Pub Association (BBPA) chief executive Emma McClarkin said: “We welcome this much-needed support from the Chancellor, worth £277m to UK pubs. It is the lifeline we have been campaigning for to save our pubs and help them survive through to the spring.
In the coming months, the Government must also share how it will help our sector to play a leading role in the economic recovery when it can reopen, by extending stimulus support such as the Business Rates holiday and VAT cut, along with further initiatives including a beer duty cut. The sooner we hear of the long-term support for the sector the better.”
The Government has also come under fire from the trade for banning takeaway alcohol services, meaning pubs can only serve alcohol as a delivery service.
