A £1BILLION fund to support businesses hit by Covid restrictions will "help to soften the blow" for firms in Dorset's hard-pressed hospitality sector, industry leaders have said.

Chancellor Rishi Sunak has offered a £1bn fund of cash grants of up to £6,000 for each eligible hospitality firm, as well as announcing an extra £30m to help theatres and museums.

READ MORE: Business groups welcome support, but warn more needed if restrictions continue

Dorset Echo: Chancellor of the exchequer, Rishi Sunak Chancellor of the exchequer, Rishi Sunak

Last week we reported how pubs and restaurants were fearing for the future after being hit with 'constant' cancellations since the government advised people to minimise social contact in the run-up to Christmas. Venues said the hospitality industry has been 'hung out to dry' with customers urged to stay away amid the emergence of the Omicron Covid variant - but with no financial support to pick up the shortfall.

While the news of grant support has been welcomed locally, one businessman said he won't be applying for a grant and will instead leave the cash for firms that 'need it most'.

Keith Foose, who launched Naughty Fork Desserts this year in Weymouth town centre, said: "With our business, although we've seen numbers drop in the shop, we have picked up with deliveries.

"I was expecting an increase of deliveries during the winter anyway.

"Any grants would be good for businesses within the sector to prepare for any impending lockdown, but I don't think we need a grant. It would be wise to leave any grants in the pot for businesses that need it most."

Dorset Echo: Jamie Crage, who runs The ClosetJamie Crage, who runs The Closet

Jamie Crage, who runs The Closet nightclub in the town said he is likely to apply for the grant - and that is it an indication a fourth lockdown since March 2020 is on its way.

He said: "It's good if we're eligible to apply for the grant.

"It's been a quiet winter compared to previous years and we have had a lot of cancellations.

"I've spoken to business owners at other venues across Weymouth and they have also said they're experiencing mass cancellations.

"It's frustrating. We haven't heard any news of a possible fourth lockdown.

"The main issue is we've recently had issues with Covid passports. Most people don't know what they're supposed to do, and what details to provide.

"News of the support package and grants is a load off, but it may just have confirmed that we will be closing soon and going into another lockdown."

Dorset Chamber president Caron Khan said: "These new measures will help soften the blow for businesses in the county’s hard-pressed hospitality sector.

"They are welcome and will provide some respite but could prove to be a drop in the ocean for those worst hit by cancellations and falling trade over the festive period.

"It is pleasing to see the government listen to the voice of businesses in Dorset and elsewhere through the British Chambers of Commerce.

"However, wider support will undoubtedly be required if restrictions persist or are tightened further in the coming days or weeks."

Dorset Echo: Dorset Chamber president Caron KhanDorset Chamber president Caron Khan

A spokeswoman from We Are Weymouth (BID), said: "While we're pleased to hear of the Government’s package to support the leisure and hospitality sectors today, businesses need more.

"The package does not provide support to the many other sectors who have been hit equally hard by the lack of footfall at what should be a busy time of the year.

"Access to these funds are needed immediately, along with robust measures to ensure that all businesses get the support they need in these uncertain times."