The £10m Hospitality Grant Scheme explained, and how to fund the rest
The £10m Hospitality Grant Scheme opens for applications at the end of September. Here is what it funds, who it is for, and how to pay for the rest.
Reading time5 min read
CategoryBusiness guides
Written byThe bizbritain team
The Hospitality Grant Scheme is a £10 million government fund for independent pubs, restaurants and cafés. It runs for three years. Applications are being received from the end of September 2026. It pays towards getting new hospitality ventures off the ground, bringing empty premises back into use, and training programmes.
£10mthe total fund, spread over three years
£3mset aside for Pub is The Hub, which supports rural pubs
20%cut to business rates for pubs, clubs and live music venues in England from next April
£1,000what the government estimates that rates cut saves a typical pub
Section 01
What the Hospitality Grant Scheme funds
The government announced the scheme on 2 September 2026. According to the announcement, the money goes to three kinds of project.
New ventures
Getting a new pub, restaurant or café off the ground.
Empty premises
Bringing a vacant building back into use as a hospitality business.
Training
Training programmes that help young people into their first jobs in the sector.
£3 million of the £10 million is set aside for Pub is The Hub. According to the government, that organisation helps pubs in rural and deprived areas add services such as village stores, community cafés and play areas.
There is a second piece of support alongside the fund. According to the government, pubs, clubs and live music venues get a 20% cut to their business rates bills from next April. It estimates that saves a typical pub about £1,000. Business rates are devolved, so that cut applies in England.
Section 02
Who can apply, and what has not been published
The announcement names village pubs, family-run restaurants and neighbourhood cafés. Guidance is on the government's grants site now. Applications are being received from the end of September.
One thing is missing, and it matters.
The government has not published a maximum grant size. £10 million spread across three years and a whole sector is not a large pot. So read the guidance before you build a plan around a number. And be careful with any grant figure you see quoted elsewhere, because the government has not published one.
Section 03
How much of the project will a grant cover?
Almost certainly not all of it.
A kitchen fit-out, a refurbishment or taking on an empty building costs real money. A share of a £10 million fund is unlikely to reach the whole bill. Grants also pay on the funder's timetable rather than yours. Trades, suppliers and deposits usually want paying first.
Myth 01
“If I get the grant, I will not need finance”
Most grant-funded projects still need money alongside the grant. Sometimes that is a short bridge until the grant lands. Sometimes it is the rest of the cost.
Price the whole project first. Then work out which part the grant covers.
Section 04
Funding the rest of the project
Three things usually pay for a hospitality project. The grant is one of them.
The first is your own cash, or money already in the business. The second is borrowing. The third is the grant.
For a pub, café or restaurant that is already trading, the borrowing is usually business growth finance for a refurbishment, equipment or stock. Where the project is somebody's first business, the government-backed Start Up Loans scheme lends £500 to £25,000 per founder, and up to £100,000 per business.
bizbritain is a Start Up Loans Business Support Partner. That means we help applicants get the business plan and cash flow forecast right before they apply. You can build both for free with our planning tool, and a grant application will ask for much the same information.
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