New grants for businesses forced to remain closed under Tier 3

‘UNPRECEDENTED IMPACT’: Councillor Daren Hale. Picture by Neil Holmes Photography

Pubs, cafes and restaurants in Hull are to receive support grants of £3,000 after it was announced the city is remaining in Tier 3 of Covid-19 restrictions.

Hospitality venues forced to close under the Government measures will be entitled to the funding from Hull City Council.

Councillor Daren Hale, deputy leader of the council, said: “We are well aware of the financial strain in particular this places on our hospitality sector. In response to this, given the importance of the hospitality sector within Hull, decisive action has been taken to support this sector. 

“Covid-19 has had an unprecedented impact on the city’s economy and in particular the hospitality sector. We have limited discretionary funds to distribute to support businesses but we have committed to an additional £3,000 from the Government-funded Additional Restrictions Grant to support the pubs, restaurants and cafes across the city. 

“This additional grant will be paid out prior to Christmas to help business through what would usually have been the busiest time of the year for them.” 

The Government has announced an additional £1,000 for ‘wet pubs’ – meaning pubs that do not serve food –  but the funding details have not yet been received by local authorities. The £3,000 grants being distributed by the council will include the £1,000.

Businesses required to remain closed under the Tier 3 restrictions, and some leisure businesses which can reopen on a limited basis, will also receive further payments under the Local Restrictions Support Scheme. 

Those which have already claimed a payment for the lockdown period from November 5 to December 2 will not need to reapply. All existing claims will be reassessed to determine their eligibility for a Tier 3 payment and payments made automatically into the bank account previously provided. 

The council is aiming to complete this process before Christmas. 

Claire Reading, development manager of the Federation of Small Businesses for South Yorkshire, East Yorkshire and The Humber, said: “The announcements following the tier review this week impact further on our hospitality sector and the Christmas period is such a vital time for many. 

“Lots of our pubs, restaurants and cafes would normally make between 20 and 25 per cent of their annual income during this time and, as this will not be the case for 2020, these additional funds will be welcome news. 

“The council have been really keen to get all grant funding out to local businesses as quickly as possible and this grant being paid out automatically just before Christmas, comes at a time when it is needed the most.”