On 21 December 2021, Rishi Sunak announced an additional £1bn of financial support to those business most impacted by the latest Covid-19 variant, Omicron. The Hospitality and Leisure Grant Scheme will offer eligible businesses a one-off grant of up to £6,000 per premises. Insolvency practitioner, Matt Hoy, shares his thoughts on the latest funding being offered.

I was a little surprised when I heard the recent announcement of the hospitality grant. I was struggling to see how such a small sum in the grand scheme of things was going to make a material difference. I wanted to hear directly from the industry what they thought of it. A connection of mine specialises in accountancy in the hospitality sector. I asked him what he thought. He didn’t want me to quote his first answer! His approved quote is below:

“Before these sorts of measures and grants are announced, I feel they really need to put their ears to the ground and find out what would make a difference. £6k – as much as the gesture is appreciated – does not make a single difference to any of my clients who range from small coffee shops to large restaurant chains, all with rent and rates to pay. 50% drop in income post the government’s announcement during the busiest time of year equates to far more than £6k in losses.”

Matt Taylor – Opsyte Online Limited, A Hospitality Solutions Group Company. 

Matt’s views do not surprise me at all. To me these grants are going to fall in to one of two categories.

• They’ll go to companies that would have survived without them.
• They’ll go to companies that are simply delaying the inevitable.

Either scenario is surely a waste of tax payers’ money. The grant in my view either needs to be at a level where it’s going to make a real difference or it’s simply not worth the bother.

I hate being in any way critical of any government support as the position has been somewhere between incredibly difficult and impossible. But I have to say this one makes no sense to me.

If your business is in the hospitality or leisure sector and you’d like to discuss your financial situation in confidence, you can all our team today on 0808 196 8676 or simply email help@trusolv.co.uk