Sunak’s £9k grant ‘won’t cover costs’ for business

CHANCELLOR Rishi Sunak’s £4.6billion package for businesses is ‘not enough’ without further support measures, industry leaders warned yesterday.

Mr Sunak said the government help will allow around 600,000 retail, hospitality and leisure firms to access a oneoff grant of up to £9,000.

A further £594million has been made available for councils and devolved administrations to support businesses not eligible for the grants, as new lockdown measures take hold.

However, Mr Sunak (pictured) stopped short of extending the business rates holiday and cuts to VAT – two of the key demands from industry groups.

Kate Nicholls, chief executive of trade group UK-Hospitality, warned the new measures are ‘only a sticking plaster’ and called on the chancellor to announce a longerterm economic plan.

‘This is obviously a very positive step to keep businesses afloat in the immediate term and, for that reason, must be welcomed,’ Ms Nicholls said.

‘However, while this announcement is most welcome, make no mistake that it is not enough to even cover the costs of many businesses and certainly will not underpin longerterm business viability for our sector.’ Emma McClarkin, chief executive of the British Beer & Pub Association, said the measures are expected to be worth about £277million to UK pubs.

‘The grants will mean many pubs may now be able make it through until spring,’ she said.

‘The government now must also provide the same levels of support to brewers who are not eligible for the support announced today.’

But a ban on takeaway pints during lockdown could prove to be the ‘death knell for many pubs’, warned the Campaign for Real Ale. Katy Boulter of the Royal Oak in Bartonunder-Needwood, Staffordshire, described the rules governing pubs as ‘mad’ and called for a ‘level field’ with supermarkets.