Government offers a shot in the arm to struggling new and established hospitality venues, with applications opening at the end of the month.
- The £10 million Hospitality Grant Scheme is aimed primarily at new hospitality ventures and bringing vacant premises back into use
- The scheme builds on a successful pilot that’s already delivered over 70 rural pub projects
- Business owners don’t have to wait until September for help — the Hospitality Support Fund, the Zero Carbon Hospitality initiative, and the £3,000 Youth Jobs Grant are all available today
The government has reworked its £10 million Hospitality Grant Scheme to give more independent pubs, restaurants, and cafes a shot in the arm, with applications opening at the end of September.
Initially, the scheme was targeted at pubs, but it’s now been broadened to also target people starting new hospitality ventures, as well as those bringing vacant venues back into use. £3m of the total sum, however, is still earmarked for Pub is the Hub – a non-profit helping pubs in rural areas diversify 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 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.
- Check if you’re eligible – Review the scheme guidance on GOV.UK to confirm your business or project fits the scheme’s aims, whether that’s launching a new venture or bringing vacant premises back into use.
- Register on the government’s portal – Applications are submitted through the Department for Business and Trade’s official grants portal, where applicants will need to create an account or log in before starting an application.
- Submit your application from the end of September – The portal won’t accept new applications until then, so it’s worth having business and trading details ready to go as soon as 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.
- The Hospitality Support Fund (HSF) – Aimed at “delivery-ready” projects with a minimum value of £100,000, this scheme is accepting applications right now.
- Zero Carbon Hospitality initiative – Provided by Zero Carbon Services, this incentive provides eligible businesses with an energy-saving plan and digital tools to curb energy consumption and lower their bills.
- The £3,000 Youth Jobs Grant – This relief is aimed at businesses hiring young people, as part of a government effort to tackle youth unemployment.
