UKHospitality's CEO has reacted to the increase in the level of State Aid. Kate Nicholls said, “The increase in the value of subsidies permitted to businesses is a positive move by Government and will allow more businesses to access the grants that they so desperately need.
'While this cut-off means that some businesses will continue to miss out on parts of the funding that Government has announced, it is a big step forward and provides certainty for business.'
Nicholls continued, 'This increase must be communicated to local authorities urgently to ensure that funds are paid out. Government could go further and explore uncapped grants in respect to Covid-19 in line with EU subsidy rules.
“The Business Secretary has rightly recognised that these companies are significant employers and that 230,000 people’s jobs were potentially at risk if this emergency funding has not been provided.'
Nicholls expanded, “Government must now look urgently at the arbitrary £2 million cap imposed on business rates relief in Wednesday’s Budget. This will see many mid-sized businesses facing full rates bills in July, just days after reopening.
'This limit on support for hard-pressed hospitality businesses is deeply damaging and could threaten the survival of jobs and businesses in the sector, as mid-sized companies are forced to prioritise paying tax over paying wages.
'We urge Government to take the same pragmatic and sensible approach to rates relief as with subsidies and review their approach on business rates support.”