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A new grant scheme to help pubs, restaurants and cafes get off the ground, run training schemes and bring vacant premises back into use has been launched by the government.
The Hospitality Grant Scheme follows a pilot that helped deliver over 70 rural pub projects, two hospitality training facilities in UK prisons, and an innovation hub.
The prison project was run by non-profit The Right Course which used pilot funding to turn prison staff restaurants and kitchens into a hospitality training facility. It provided inmates with experience of a high-street-style working environment.
Of the new £10 million funding, £3 million has been allocated to Pub is The Hub, an organisation that helps rural pubs to diversify services and activities, such as adding village stores, community cafes, play areas and arts and crafts activities.
Kate Dearden, minister for the future of work, said:
“Hospitality venues are where communities come together and where many people get their first experience of work. They create jobs and help our towns and neighbourhoods to thrive.
“This funding will back local businesses to grow, boost opportunities for people across the UK and support growth in every part of the country.”
Applications for the grants open at the end of September. More details here.
The new funding comes at a difficult time for hospitality. Many are reporting significant challenges coping with rising costs including business rates and increases to National Insurance contributions.
In one of his first announcements as prime minister, Andy Burnham said pubs, clubs and live music venues in England will receive a 20% cut to their business rates bills from April 2027.
That follows a 15% reduction on pubs and live music venues’ rates bills from April this year, which was introduced after criticism that changes announced in the 2025 Autumn Budget would lead to company closures due to increased costs after a Covid-era discount for retail, leisure and hospitality firms was removed and properties were revalued.
Last week, the government announced a review into how the way business rates are calculated can be made fairer for pubs and hotels.
