Thank you for contacting me about supporting our pubs.
No one wants to see restrictions continue for a day longer than is necessary. I take comfort in the Prime Minister's announcement about reopening our country, which has endured difficult but necessary restrictions to save lives. I know just how eager pubs are to reopen and many will be disappointed that the easing of restrictions on hospitality will take place no sooner than April.
It is nonetheless encouraging that pubs will be able to reopen outdoor table service, with no requirements for a meal to be served with alcohol or a curfew in place. Under Step 3, which is expected to begin on 17 May, indoor hospitality can once again take place as well. In June, all restrictions on social distancing are scheduled to be removed.
I realise that it will be some time before pubs can fully operate and not all pubs will be able to reopen with outdoor table service. The approach on lifting restrictions balances caution with certainty, setting an attainable timeline to ensure that the easing of measures will be permanent.
The closure of pubs has been difficult to bear and the Government is rightly providing significant support for hospitality businesses. The upcoming Budget in March will make further announcements on financial support and I know that all taxes, including business rates, are kept under review. I have been reassured by my colleagues in the Treasury that they are aware of the calls for a VAT reduction on alcohol, an extension of furlough and the continuation of the business rates holiday. I shall be following the developments on this issue closely, and I will ensure my colleagues at the Treasury are aware of the strength of feeling on this issue.
As we entered a national lockdown in January, the Chancellor unveiled further economic support for retail, hospitality and leisure businesses, including pubs, in light of the restrictions. New one-off top-up grants were announced, worth up to £9,000 per property, to help businesses through to the spring. For those businesses not eligible for the grants, a £594 million discretionary fund is being made available by the Government as a matter of urgency. The new one-off grants come in addition to billions of pounds of existing business support, including grants worth up to £3,000 for closed businesses, and up to £2,100 per month for impacted businesses once they reopen.
I understand that pubs have been subject to debilitating restrictions for a long time, and I hear requests for a longer-term sector-specific package of support. While I take account of your concerns, and will bear them in mind, I welcome that pubs have had access to unprecedented levels of support throughout the pandemic. Ministers have been forthcoming in unveiling support grants, business rates relief, Government-backed loans and access to schemes such as the Coronavirus Job Retention Scheme. As a package, these measures worked to support publicans and I know that Ministers will continue to respond to developments as they happen.
I appreciate your concerns regarding the sale of alcohol for takeaway by pubs under the current rules. While this has been permitted under previous restrictions, I understand that the Government is concerned about the impact that this could have on facilitating the unlawful gathering of individuals outside of pubs. As such, it has been decided that pubs may only sell food and non-alcoholic drinks for takeaway, and alcoholic drinks for delivery. I realise the strain this puts pubs under that do not have an off-licence, which is why it is important that restrictions are lifted as soon as possible once it is safe to do so.
The Coronavirus Job Retention Scheme was extended until April to give people and businesses across the whole United Kingdom the certainty they need over what will be a difficult winter. Under the extension, the Government will pay 80 per cent of wages up to a cap of £2,500, with employers paying employer National Insurance Contributions and pension contributions only for the hours the employee does not work. Flexible furloughing will be allowed in addition to full-time furloughing.
Despite this, I am glad that evidence continues to be collected on the impact of the pandemic on the hospitality sector and we must look forward to the easing of restrictions as announced by the Prime Minister.
Thank you again for taking the time to contact me.
Craig Whittaker MP
March 2021