Omicron Hospitality and Leisure Grant (OHLG)

One-off payment for hospitality, leisure and accommodation businesses

Applications for this scheme has now closed from 18 March and we are unable to accept any new applications. If you have already submitted an application and have been asked to provide further information please provide this by Friday 25 March. The closing date for any payments under this scheme is 31 March.

On 21 December 2021, the Government announced the introduction of grant support for hospitality, leisure and accommodation businesses in England who are liable for business rates, occupying and trading as at 30 December 2021. The scheme is a one-off grant called the Omicron Hospitality and Leisure Grant (OHLG) which eligible businesses will be required to apply for, and the amount a business receives will depend on the rateable values as follows:

Table detailing Omicron Hospitality and Leisure Grant (OHLG)
DescriptionOmicron Hospitality and Leisure Grant - One-off payment 
Business rate payer Yes, on 30 December 2021 
Grant per business 1 per hereditament, occupying and trading on 30 December 2021
Business typeHospitality, leisure and accommodation
Period in payment cycle One-off payment
Expected payment date Week commencing 17 January by BACS
Grant threshold - rateable value £15k and under £2,667
Grant threshold - rateable value more than £15k and less than £51k £4,000
Grant threshold - rateable value £51k and above £6,000
Scheme application closure date 18 March 2022
Eligibility criteria
  • In occupation and trading on 30 December 2021
  • Engaged in business activity including online
  • In the prescribed, eligible business sector (see below)
  • Rate-paying business
  • Solvent
  • Under permitted subsidy allowances
Will businesses who have already been paid a grant need to reapply?

Yes, as the eligibility criteria is not the same

Who is eligible

The grants are available to eligible, trading hospitality, leisure and accommodation businesses (in occupation) as defined in the government guidance and who were liable for business rates as at 30 December 2021 and continue to trade.

Hospitality

For the purposes of this scheme, a hospitality business can be defined as a business whose main function is to provide a venue for the consumption and sale of food and drink. A business is eligible for a grant if they are:

  • Offering in-person food and drink services to the general public
  • Provide food and/or drink to be consumed on the premises, including outdoors

For these purposes, the definition of a hospitality business should exclude food kiosks and businesses whose main service (generating 50% or more of income) is a takeaway.

Eligible hospitality businesses under this scheme therefore are:

  • Food courts
  • Public houses/pub restaurants
  • Restaurants
  • Roadside restaurants
  • Wine bars
  • Cafes

Leisure

For the purposes of this scheme, a leisure business can be defined as a business that provides opportunities, experiences and facilities, in particular for culture, recreation, entertainment, celebratory events and days and nights out. A business is eligible for a grant if they:

  • Provide in-person intangible experiences in addition to goods
  • Rely on seasonal labour
  • Assume particular public safety responsibilities
  • Operate with irregular hours through day, night and weekends

For these purposes, the definition of a leisure business should exclude all retail businesses including hair and beauty salons, coach tour operators, tour operators and gyms and sports businesses, including dance and fitness studios of any type, where physical exercise or training is conducted on an individual basis or group basis.

Eligible leisure businesses under this scheme therefore are:

  • Casinos and gambling clubs
  • Cinemas
  • Museums and art galleries
  • Stately homes and historic houses
  • Theatres
  • Zoos and safari parks
  • Wedding venues
  • Events venues
  • Nightclubs and discotheques
  • Arenas
  • Concert halls
  • Tourist attractions
  • Theme parks
  • Amusement arcades
  • Soft play centres or areas
  • Clubs and institutions
  • Village halls and scout huts, cadet hits etc.

Accommodation

For the purposes of this scheme, an accommodation business can be defined as a business whose main lodging provision is used for holiday, travel or other purposes. A business is eligible for a grant if they:

  • Provide accommodation for ‘away from home’ stays for work or leisure purposes
  • Provide accommodation for short-term leisure and holiday purposes

For these purposes, the definition of an accommodation business should exclude private dwellings, education accommodation, residential homes, care homes, residential family centres and beach huts.

Eligible accommodation businesses under this scheme therefore are:

  • Caravan parks
  • Caravan sites and pitches
  • Chalet parks
  • Coaching inns
  • Country house hotels
  • Guest houses
  • Hostels
  • Hotels
  • Lodge
  • Holiday apartments, cottages or bungalows
  • Campsites
  • Boarding houses
  • Canal boats or other vessels
  • B & Bs
  • Catered holiday homes
  • Holiday homes

 Who is not eligible 

  • Businesses that are not within the ratings system
  • Businesses that are not within the prescribed sectors as defined above
  • Businesses which have already received grant payments that equal the maximum permitted subsidy allowances
  • Businesses that are in administration, insolvent or where a striking-off notice has been made

Funding

 Eligible businesses will be able to access up to £6,000 as a one-off payment at the following rates: 

Funding Table
 Rateable Value One-off Payment 
 £15,000 or less  £2,667
 £15,001 and less than £51,000  £4,000
 £51,000 or greater  £6,000

  

Before you start

Applications for this scheme has now closed from 18 March and we are unable to accept any new applications. 

Fraud

You may face prosecution if you have manipulated or falsified your position in order to obtain these payments, including failure to close your business which puts others at risk.

Any payment made as a result of fraud may be subject to claw back, as may any grants paid in error.

The Government is supporting local councils to make the necessary checks to ensure payments can be verified and have been made correctly.

Grants subject to tax

Grant income received by a business is taxable. The OHLG will need to be included as income in the tax return of the business.

Only businesses that make an overall profit once grant income is included will be subject to tax.

Payments made to businesses before 5 April 2022 will fall into the 2021/22 tax year. Unincorporated businesses will be taxed when they receive the grant income.

COVID-19 Business Grant Subsidy Allowances

The EU State Aid rules no longer apply to subsidies granted in the UK following the end of the transition period, which ended on 31 December 2020. Under the Withdrawal Agreement, the State Aid rules continue to apply during a transition period, subject to regulation by the EU Commission. Find out more about organisation rules on subsidies, and other international commitments.

There are three subsidy allowances for the COVID-19 Business Grant Schemes set out below: Small Amounts of Financial Assistance Allowance, the COVID-19 Business Grant Allowance and the COVID-19 Business Grant Special Allowance.

Small Amounts of Financial Assistance Allowance 

Grants may be paid in accordance with Article 364(4) of the Trade and Cooperation Agreement (TCA), which enables an applicant to receive up to a maximum level of subsidy without engaging Chapter 3 of the TCA. This allowance is up to 325,000 Special Drawing Rights, to a single economic actor over a rolling period of three fiscal years (the “Relevant Period”), which is the equivalent of £335,000 as at 2 March 2021. An applicant may elect not to receive grants under the Small Amounts of Financial Assistance Allowance and instead receive grants only using the below allowances available under this scheme.

COVID-19 Business Grant Allowance 

Where the Small Amounts of Financial Assistance Allowance has been reached or an applicant has elected not to receive a grant under this allowance, grants may be paid in compliance with the Principles set out in Article 366 of the TCA and in compliance with Article 364(3) of the TCA under the COVID-19 Business Grant Allowance (subsidies granted on a temporary basis to respond to a national or global economic emergency). For the purposes of the COVID-19 Business Grant Schemes, this allowance is £1,900,000 per single economic actor. This allowance includes any grants previously received under other COVID-19 Business Grant Schemes using the COVID-19 Business Grant Allowance and any State aid previously received under Section 3.1 of the European Commission’s Temporary Framework across any other UK scheme. This may be combined with the Small Amounts of Financial Assistance Allowance to equal £2,235,000 (subject to the exact amount applicable under the Small Amounts of Financial Assistance Allowance using the Special Drawing Right calculator, and any other support an applicant has received under the Small Amounts of Financial Assistance Allowance in the Relevant Period). 

COVID-19 Business Grant Special Allowance 

Where an applicant has reached its limit under the Small Amounts of Financial Assistance Allowance and COVID-19 Business Grant Allowance, it may be able to access a further allowance of funding under the COVID-19 Business Grant Schemes of up to £10,000,000 per single economic actor, provided the following conditions are met:

a. The Special Allowance covers only the applicant’s uncovered fixed costs incurred during the period between 1 March 2020 and the date of application, including such costs incurred in any part of that period (‘eligible period’);

b. Applicants must demonstrate a decline in turnover during the eligible period of at least 30% compared to the same period in 2019. The calculation of losses will be based on audited accounts or official statutory accounts filed at Companies House, or approved accounts submitted to HMRC which includes information on the applicant’s profit and loss;

c. ‘Uncovered fixed costs’ means fixed costs not otherwise covered by profit, insurance or other subsidies;

d. The grant payment must not exceed 70% of the applicant’s uncovered fixed costs, except for micro and small enterprises (for the purposes of this scheme defined as less than 50 employees and less than £9,000,000 of annual turnover and/or annual balance sheet), where the grant payment must not exceed 90% of the uncovered fixed costs;

e. Grant payments under this allowance must not exceed £10,000,000 per single economic actor. This allowance includes any subsidies previously received in accordance with Section 3.12 of the European Commission’s Temporary Framework or previously received under the COVID-19 Business Grant Schemes using this COVID-19 Business Grant Special Allowance; all figures used must be gross, that is, before any deduction of tax or other charge;

f. Grants provided under this allowance shall not be cumulated with other subsidies for the same costs.

An applicant must be able to provide the necessary documentation to demonstrate it is eligible for funding.

Data sharing

Trafford Council will use your data for the processing of your Omicron Hospitality and Leisure Grant (OHLG) and also to provide data to government in accordance with their requirements.

We may check the information you provide or the information about you which somebody else provides, with other details we hold. If the law allows us, we may also receive information from other people or organisations or give information to them to check the accuracy of records, to prevent or detect crime, or to protect public funds in other ways.

All information is processed in accordance with the Council’s data protection policy .

Application process

You can apply for the Omicron Hospitality and Leisure (OHLG) Grant if you are registered for Business Rates, in occupation and trading as at 30 December 2021 and are a hospitality, leisure or accommodation business as defined above.

We do not accept applications from third parties for the Omicron Hospitality and Leisure Grant (OHLG).

Omicron Hospitality and Leisure Grants (OHLG) are subject to tax and will need to be declared by businesses in their tax returns.

The application window has now closed.