On 1 December 2020, the Government announced the introduction of additional support over the festive period for wet-led pubs in areas under Tier 2 or 3 restrictions. Details of the announcement can be found here: https://www.gov.uk/government/news/prime-minister-announces-1000-christmas-grant-for-wet-led-pubs
Who is it for?
The grant can only be paid to pubs which, in normal circumstances,:
- derive less than 50% of their income from the sale of food
- are open to the general public,
- allow free entry other than when occasional entertainment is provided,
- allow drinking without requiring food to be consumed; and
- permit drinks to be purchased at a bar.
Businesses that are also in receipt of other Local Restrictions Support Grants, for example LRSG (Closed) or Additional Restrictions Grant, can also receive this grant.
How much is the grant?
Under the Christmas Support Payment scheme, eligible wet-led pubs within Local Authorities under Tier 2 or Tier 3 restrictions for all or part of the period between 2 and 29 December 2020 will receive a one-off payment amounting to £1,000 for each qualifying establishment on the rating list.
Under the national government guidance the definition of a pub specifically excludes:
- restaurants, cafes, nightclubs, hotels, snack bars, guesthouses, boarding houses, sporting venues, music venues, festival sites, theatres, museums, exhibition halls, cinemas, concert halls and casinos.
In addition, under the national government guidance the following exclusions will apply:
- Pubs that derive over 50% of their income from food sales will not be eligible to receive funding through this grant scheme
- Businesses that have reached the State Aid limit
- Businesses that are in administration, insolvent or where a striking-off notice has been made, are not eligible for funding under this scheme.
- Only one grant per eligible business premise will be paid.
- Businesses must have been trading on 30 November (the day before this scheme was announced) to be eligible to receive funding under this scheme. Where local restrictions are preceded by national ‘lockdown’ measures, requiring the closure of businesses that are otherwise eligible, it is accepted that those businesses are still trading.
In accordance with Government guidance, this grant will be a one off flat-rate payment of £1,000 to each eligible wet-led pub for the period 2 December to the 29 December. This scheme will close on the 29 December 2020, and all applications will need to be submitted to us, using the online form, by 31 January 2021. All payments to eligible pubs will be made as soon as possible.
- Grant income received by a business is taxable, therefore the Grant will need to be included as income in the tax return of the business.
- Only businesses which make an overall profit once grant income is included will be subject to tax.
Do the rules about subsidies apply?
The Brexit transition period has ended and new rules on subsidy control now apply. The Christmas Support Payment for wet-led pubs scheme is a subsidy. If a receiving a grant may mean that your business has had £350,000 or more in subsidies in the last three years, we will need to ask you for more information and you are invited to contact us directly regarding your business. You can read more on the rules about subsidies here.
Wet-led pubs applying for the Christmas Support Payment (CSP) will be required to make a statement that confirms their eligibility. The council places responsibility on the applicant to agree that their statement is correct to the best of their knowledge.
Businesses may need to provide evidence to support their statement that the wet-led pub derives less than 50% of its income from sales of food. If required this evidence will need to be in the form of a set of accounts for the property with a separate breakdown of the sales of food, beverages, and any other income. Businesses established after 11 March 2020 and before 1 December 2020 will still be eligible for this grant but will need to provide accounts covering the period you have been open.
We will contact you if we need you to supply this evidence.
How to apply
To apply for the Christmas Support Payment for wet-led pubs, please complete our online form.
If you have any questions about this scheme, please contact the Business Support Team by email at firstname.lastname@example.org
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