Chancellor Rishi Sunak has announced that around 600,000 businesses in the hospitality, retail and leisure sector will receive a one-off payment of up to £9,000.
In total, the payments, which are aimed at helping support businesses through tighter coronavirus restrictions, will cost the Treasury £4.6 billion.
The Chancellor also announced that a further £594 million will be made available for local authorities and devolved administrations, in order to support businesses that are not eligible for the grants.
The Scottish Government will receive £375 million, the Welsh Government will get £227 million and the Northern Ireland Executive will receive £127 million.
How much will businesses receive?
The one-off grant payments that businesses receive will be based on the size of each shop, pub, cafe or hotel tied into the business rates which are typically paid by each business.
Gov.uk says, “The cash is provided on a per-property basis to support businesses through the latest restrictions, and is expected to benefit over 600,000 business properties, worth £4 billion in total across all nations of the UK.”
The smaller sites will be able to claim up to £4,000, medium-sized sites up to £6,000 and larger sites up to £9,000.
Mr Sunak said: “This will help businesses to get through the months ahead - and crucially it will help sustain jobs, so workers can be ready to return when they are able to reopen.”
These new one-off grants come alongside grants previously announced of up to £3,000 for closed businesses, and up to £2,100 per month for impacted businesses once they reopen their doors.
Addressing the Chancellor’s recent announcement, West Midlands Mayor, Andy Street, wrote on Twitter: “I’m delighted the Chancellor has responded to our calls and put more cash on the table for the most affected sectors.
“This is a short-term solution and more recovery support will be needed, but it is a hugely positive step.”
However, Campaign for Real Ale (Camra) chairman, Nik Antona, said that although the new grant is welcome, long-term support needs to be put into place.
“It is clear now more than ever that the Government must introduce a new, long-term and sector-specific financial support package to help these businesses survive the coming months,” Mr Antona said.
“While one-off grant support is welcome, it is nowhere near enough to cover the haemorrhaging costs for pubs and breweries that don’t see any end in sight.”