A group representing Andover businesses has welcomed the government's decision to offer grants to hospitality businesses in England.

Businesses in the hospitality and leisure sectors will receive one-off grants of up to £6,000, and the government intends to use taxpayers’ cash to cover the cost of statutory sick pay for Covid-related absences for firms with fewer than 250 employees.

The £1 billion package of measures was revealed by Rishi Sunak last week.

Now, the Andover Business Improvement District (BID) has welcomed the move.

They had joined other BID’s, UKHospitality, Mayor of London, The BID Foundation, British BIDs, the Night-Time Industries Association amongst others in petitioning for greater financial support for the hospitality, retail and leisure sectors.

Steve Godwin, Andover BID manager, said: “At what is often their most profitable time of year, many pubs and restaurants in Andover have seen cancellations and reduced footfall as people have responded to the rise in cases ahead of Christmas, with Hospitality UK reporting that many businesses have lost 40-60% of their December trade, often their most profitable month.

"We are pleased that the government have listened and acknowledged the vulnerability that this new Omicron strain has brought to the industry but only time will tell whether the grants are enough.

"When Test Valley Borough Council, who administer grants on behalf of central government, open their application process, BID will let businesses know.”

The BID added that full business rates relief, VAT relief extension, additional grants, support for freelance and self-employed workers and targeted support for cultural businesses are the foundation of a critical 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.”

Mr Sunak added: “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.”

But the chief executive of Best Western Hotels in Great Britain said the support “doesn’t go far enough”.

Tim Rumney, chief executive of BWH Hotel Group Great Britain, told BBC Radio 4’s PM programme: “It’s like a dud cracker on Christmas Day.

"The support is always welcome but it just doesn’t go far enough to help us with the problems that we’re going through at the moment with the cancellations and the impact on the finances of hotels and hospitality."