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.
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.
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