How to apply for the government’s £10 million Hospitality Grant Scheme

The government has launched a £10 million Hospitality Grant Scheme to give independent pubs, restaurants, and cafes a shot in the arm, with applications being accepted from the end of September. 

This scheme is predominantly targeted at people starting new hospitality ventures, as well as those bringing vacant venues back into use. However, £3m of the sum is earmarked for Pub is the Hub – a non-profit helping pubs in rural ares diversity their activities.

]The announcement follows the news that pubs, clubs and live music venues are set to receive a 20% slash to business rates from April, and will likely provide welcome relief to a sector under pressure, with research finding that 23% of pubs and restaurants are operating at a loss.

New government scheme will give new hospitality owners a leg up

If you’re a new or aspiring hospitality business owner, you already know the path to opening a venue in 2026 is paved with risks. Hospitality is the second worst-performing sector for insolvencies after construction, accounting for 15% of all business failures in England and Wales. 

The government’s new £10 million Hospitality Grant Scheme aims to close the gap for local pub, restaurant, and cafe owners by lowering the barrier to entry for people trying to get a venue off the ground. 

Specifically, it’s designed to fund projects that help new hospitality venues launch, and bring vacant premises back to use, rather than leaving high streets with empty units.

Alongside launch capital, the scheme also funds training programmes to help new business owners develop the skills, confidence, and work ethic to nurture their venture. 

For example, funding from the scheme’s pilot has already been used by the non-profit Right Course to transform prison restaurants and kitchens into hospitality training facilities, helping to provide inmates with valuable hospitality experience. 

This practical focus is already earning the scheme support from the industry, with Jane O’Riordan, Co-Chair of the Hospitality Sector Council, noting that “the flexible funding will help support innovative projects that boost productivity and sustainability, create opportunities for young people and those furthest from the labour market.”

With the sector in its current state, the £10 million pot won’t fix cost pressures overnight. However, for the entrepreneurs, it’s likely to be a huge helping hand at a time they need it most. 

Applications for the Hospitality Grant Scheme won’t open until the end of September, but guidance is already live on GOV.UK – meaning business owners can start preparing now rather than waiting until the window opens.

Could the Pub is The Hub’s £3m windfall be a lifeline for village locals?

While this government scheme is geared towards new entrants, existing pub owners haven’t been left out of the conversation completely. 

£3 million out of the £10 million pot has been ring-fenced for Pub is The Hub – an independent non-profit that’s spent the past 25 years helping pubs in rural and deprived areas diversify beyond just serving drinks. 

According to the government’s press release, this could include anything from adding village stores, community cafes, and play areas to pubs, enabling establishments to act as vital local hubs for their community. 

Admittedly, for pubs it’s a survival strategy as much as a growth one. With almost two pub closures recorded every day in 2026, failing to diversify could mean last orders for good for venues that have anchored their communities for decades. 

The Hospitality Grant Scheme isn’t the only relief measure on the table for pubs, though. The announcement follows news that pubs, clubs, and live music venues will receive a 20% cut to their business rates bills from April – a change expected to save the typical pub £1,000 per year.

While these are clear steps in the right direction, businesses are still playing a waiting game until these schemes become available. But fortunately, for struggling hospitality businesses that can’t afford to sit tight until the end of the month, there are other schemes available right now.