Almost 80,000 pubs, restaurants, hotels and guest houses in England will be entitled to claim more than £936 million in the new grants, around £1 in every £5, from the overall funding pot.
The Government announced at last Wednesday’s Budget ‘Restart Grants’ in England worth up to £18,000 per property for hospitality, accommodation as well as leisure, personal care and gym businesses with a less generous scheme for non-essential retail.
Analysis of official Government data by the real estate adviser Altus Group shows 37,463 pubs will be entitled to £445.97 million, 27,154 restaurants entitled to £324.28 million whilst 13,976 hotels and guest houses entitled to £165.96 million.
Whilst the Government haven’t formally published full details of the scheme, it is understood the grants will be structured in a way that will see businesses occupying properties appearing on the local rating list with a rateable value of exactly £15,000 or below receiving a payment of £8,000 whilst those with a rateable value over £15,000 but less than £51,000 receiving 50% more with a payment of £12,000.
The higher maximum grant of £18,000 is available for those businesses occupying properties with a rateable value of exactly £51,000 or above.
The Government says this will give cash certainty needed to plan and safely relaunch trading over the coming months.
|Restart Grants||Properties||Grant £8,000||Grant £12,000||Grant £18,000|
|Rateable Value||Rateable Value over £15,000||Rateable Value|
|£15,000 or under||and less than £51,000||exactly £51,000 or above|
|Guest & Boarding Houses||7,008||£ 51,112,000||£ 6,900,000||£ 792,000|
|Hotels (3 Star & Under)||3,611||£ 6,992,000||£ 16,656,000||£ 24,282,000|
|Hotels (4 Star & Above) & Major Chain Operated||3,357||£ 96,000||£ 2,160,000||£ 56,970,000|
|Public Houses/Pub Restaurants||37,463||£ 110,744,000||£ 179,868,000||£ 155,358,000|
|Restaurants||27,154||£ 78,880,000||£ 131,784,000||£ 113,616,000|
|source: real estate adviser, Altus Group|
The limit for subsidy controls, previously known as EU State aid, for coronavirus support was around £3.5 million (4m Euro) but, following the Budget, that has now been increased to £10.9 million.
Business Minister, Paul Scully, whose remit includes pubs and restaurants, said the extension would help “the chains and the thousands of staff they employ.”
Robert Hayton, UK President of Property Tax at Altus Group, said “the increase in subsidy controls will mean a far larger number of premises occupied by the big operators will now receive the grants which, in conjunction with the business rates relief and other measures, makes a compelling basket of support ahead of reopening.”