Rishi Sunak has announced new support measures for hospitality, accommodation and leisure businesses that fall under the Tier 2 coronavirus alert areas.

Businesses operating in the hospitality, accommodation and leisure sector under Tier 2 restrictions are now eligible to receive a cash grant from the government. This comes as part of further measures introduced by the Chancellor to support British businesses through the difficult winter period.

“These changes mean that our support will reach many more people and protect many more jobs.” The Chancellor said.

Firms in Tier 2 (High) alert areas which have been affected by the restrictions will be able to claim cash grants of up to £2,100 a month, equivalent to 70% of the value of grants available to closed businesses in Tier 3 (Very High) alert areas.

This support comes along with further changes to the Jobs Support Scheme which has been made more generous. Staff are now required to only work one day a week to be eligible for the scheme, with the contribution of the employers being reduced.

Changes to the scheme, which comes into effect on November 1, means that businesses will now only need to pay 5% of unworked hours, rather than 33%.

The Self-Employed Income Support Scheme is also being doubled from 20% to 40%. The maximum grant available to those eligible will now stand at £3,750 over the course of three months. A further three month grant will be available from February 1 next year.