Chancellor Rishi Sunak has offered a £1 billion support package to businesses hit by Covid restrictions, as the Omicron variant continues to spread around the UK.

Mr Sunak has come forward with additional help for the hospitality and leisure sectors in England following days of urgent lobbying from MPs, firms and industry officials.

It includes one-off grants of up to £6,000 per premises for businesses in the affected sectors in England, which the Treasury expects will be administered by local authorities and to be available in the coming weeks.

The Government also intends to use taxpayers’ cash to cover the cost of statutory sick pay for Covid-related absences for firms with fewer than 250 employees.

Businesses have seen revenues start to decline due to Christmas-related activities being scaled back.

Warrington Guardian: The spread of the Omicron variant has seen the Government encourage the public to get their booster vaccine (PA)The spread of the Omicron variant has seen the Government encourage the public to get their booster vaccine (PA)

Cultural organisations in England can also access a further £30 million funding during the winter via the culture recovery fund, the Treasury said.

Mr Sunak said: “We recognise that the spread of the Omicron variant means businesses in the hospitality and leisure sectors are facing huge uncertainty, at a crucial time.

“So we’re stepping in with £1 billion of support, including a new grant scheme, the reintroduction of the Statutory Sick Pay Rebate Scheme and further funding released through the culture recovery fund.”

What did Boris Johnson have to say on the support package?

Prime Minister Boris Johnson said of the new funding: “With the surge in Omicron cases, people are rightly exercising more caution as they go about their lives, which is impacting our hospitality, leisure and cultural sectors at what is typically the busiest time of the year.

“That’s why we’re taking immediate action to help with an extra £1 billion in grants to these industries and reintroducing our Statutory Sick Pay Rebate Scheme.

“I urge people across the country to please get boosted now to secure vital protection for yourselves, your loved ones and your communities.”