The UK’s chancellor of the Exchequer, Rishi Sunak, on Tuesday announced a £1 billion bailout package for businesses facing hardships because of the recent spike in COVID-19 cases in the UK, driven by the highly transmissible omicron variant.

The bailout package is primarily aimed towards the leisure and hospitality sector, which, according to UKHospitality, lost around 60% of its trade in December due to cancelled bookings, low attendance, and other associated issues. The dip in business, during what is typically the most profitable month for the sector, has prompted the government to take action, and Sunak said that the government took the decision to intervene because “the spread of the omicron variant means businesses in the hospitality and leisure sectors are facing huge uncertainty, at a crucial time.”

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The bailout package has four components. First, the government has set aside £683 million for grants for leisure and hospitality businesses in England, worth up to £6,000 per premise. Second, the government has created a £102 million fund for helping other English businesses in dire need. Third, the government has resumed its statutory sick pay rebate scheme, and finally, it has allocated £30 million for arts organisations. Additionally, the Scottish and Welsh governments, and the Northern Ireland executive are set to receive £150 million, £50 million, and £25 million respectively.

Sunak’s announcement was met with mixed reactions from both the business community and by workers. While the package was received relatively positively by those in the leisure and hospitality sector, the size of the package left many disappointed.

Meanwhile, the Trades Union Congress (TUC) criticised the government for its lack of focus on workers, suggesting that the government should have provided support to workers wages or increased sick pay. Speaking to The Guardian, TUC general secretary Frances O’Grady said, “The government has abandoned hospitality, arts and leisure staff. Millions of workers will go into Christmas worrying for their jobs and anxious about what they will do if asked to self-isolate.”

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Representatives of the travel industry weren’t particularly happy either and felt that they had been ignored despite suffering considerable losses this year. Luke Petherbridge, the director of public affairs for the Association of British Travel Agents (Abta) told The Guardian, “Travel agents, tour operators and travel management companies will rightly be asking why they haven’t been given the same treatment as other businesses that are suffering at this time.” Meanwhile, Clive Wratten, the chief executive of the Business Travel Association, called on the government to “correct this oversight.”

While businesses have not been required to close yet, under the government’s current COVID-19 plan, there is a distinct possibility of a shutdown if cases continue to rise. This would undoubtedly lead to calls for further bailout packages, and Sunak has said that the government would respond “proportionately and appropriately” if such a situation arises.