Village pubs, family-run restaurants, and cafés receive a boost as a new £10 million three-year Hospitality Grant Scheme has launched for applications.
- Boost for local pubs, restaurants and cafes as £10 million Hospitality Grant Scheme launches for applications
- Funding aims to back entrepreneurs starting new businesses, support training schemes giving young people their first jobs, and help trusted community venues to adapt and grow
- Over £3 million earmarked for non-profit Pub is The Hub
Village pubs, family-run restaurants, and neighbourhood cafés received a boost today as a new £10 million three-year Hospitality Grant Scheme has launched for applications.
Money will be invested into projects that help get new hospitality ventures off the ground, bring vacant premises back into use, or support training programmes that help people develop the skills, confidence and work ethic to open doors to future careers.
For example, non-profit The Right Course used pilot funding to help transform two prison staff restaurants and kitchens into a hospitality training facility, providing inmates with valuable experience in a realistic, high-street-style working environment.
The Hospitality Sector Council and innovation lab specialist L Marks brought together hospitality businesses and leading tech companies to find new ways to boost productivity in the industry, leading to hours of work being saved & reduced costs.
Minister for the Future of Work, Kate Dearden, 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.”
This move recognises the vital role hospitality plays in supporting local economies and communities across the UK. This includes providing many people with their first jobs, helping them develop key skills to build successful careers within and outside the industry.
£3m of the grant funding has been specifically earmarked to support Pub is The Hub – an independent non-profit organisation helping pubs in rural and deprived areas to diversify their services and activities. This includes adding village stores, community cafes, play areas and arts and crafts activities, enabling pubs to expand their role as vital local hubs.
The grant scheme comes as part of the Government’s commitment to deliver economic growth in every postcode and ensure communities across the country can share in that success.
It follows on from the announcement that pubs, clubs and live music venues are set to receive a 20% cut to their business rates bills from April, saving the typical pub an estimated £1,000 next year.
Jane O’Riordan, Co-Chair of the Hospitality Sector Council, said:
We welcome the launch of this grant scheme, which builds on a successful pilot and demonstrates what can be achieved when government and industry work together. 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, and deliver the shared priorities of the Hospitality Sector Council and the wider sector.
Pub is The Hub Chief Executive, John Longden OBE said:
Access to this new support from the Hospitality Grant Scheme is warmly welcomed as it will help inspire local publicans to diversify to create much needed local services and activities in their rural, remote or deprived areas.
BIST, together with the Treasury, has recognised the vital role that publicans and pubs play as essential small local businesses, that make positive contributions to local communities. The scheme will also encourage the leveraging of other match private and public funding to support these small businesses.
This funding will help give long-term certainty to publicans to create new services and activities in their pubs which will deliver a wider social value and create a foundation for well-being in their local areas.
Pub is The Hub has been very thankful of the support and donations from within the pub and hospitality industry over the past 25 years and looks forward to working in collaboration with the BIST and the sector moving forward.”
Guidance is available now, with applications being received from the end of September: see here
Round 1 of the Hospitality Support Fund is intended to support delivery‑ready projects that can mobilise quickly and contribute to effective spend within the 2026–27 financial year.
Applicants should therefore only apply where proposals are sufficiently developed, with clear delivery plans, realistic milestones, and a credible ability to begin funded activity shortly after grant award.
If you would like to discuss your project proposal for future funding rounds, please contact HospitalitySupportFund@businessandtrade.gov.uk
The Round 1 application window will open on 01/09/2026 for 6 weeks, and close on 13/10/2026.
Applications are unable to be accepted for round 1 after this date. Expressions of interest for future funding rounds can be sent to HospitalitySupportFund@businessandtrade.gov.uk
Strategic Objectives and Scope of the Scheme
The HSF aims to strengthen the UK Hospitality Sector by funding activity that supports one or more of the following strategic objectives:
(A) Employment Access and Entry-Level Opportunities
Support interventions that strengthen entry into employment and rebuild the labour pipeline into hospitality. Projects could include: employer-linked training and work-readiness programmes targeting those furthest from the labour market; sector-specific pathways that connect training directly to vacancies; models that reduce recruitment friction for SMEs; and wraparound support for participants and employers to improve recruitment, retention and progression, particularly for vulnerable groups such as young people who are not in education, employment or training (NEETs).
(B) Business Resilience and Viability
Support targeted interventions that improve firm-level resilience, particularly where modest investment can unlock viability. Projects could include: Diversification of business models; Repurposing space to increase utilisation or revenue streams; Interventions that stabilise trading in vulnerable locations
(C) Place-Based Regeneration and High Street Activation
Support locally coordinated, place-based interventions that strengthen the role of hospitality within high streets and communities. Projects could include: Projects aligned with local high street or town centre strategies; Initiatives that increase footfall, dwell time, or community use of space; Collaborative models involving multiple businesses or local partners
(D) Evening Economy and System Integration
Enable coordinated local interventions that support the functioning and growth of the evening economy. Projects could include: Pilots that improve coordination between hospitality businesses and local systems (e.g. transport, local authorities); Interventions that extend trading hours or improve evening accessibility; Place-based approaches that improve the attractiveness and viability of evening activity
(E) Sustainability and Cost Efficiency
Support practical, business-level sustainability improvements that also deliver cost efficiencies. Projects could include: Adoption of energy-efficient technologies or processes; Waste reduction and circular economy approaches (e.g. food waste redistribution); Innovations that reduce operating costs while improving environmental performance
(F) Productivity and Innovation in SMEs (Cross-cutting)
Enable adoption and testing of productivity-enhancing innovations that would not otherwise occur due to financial constraints. Projects could include: Technology adoption (e.g. workforce management, forecasting tools); Process innovations that improve labour productivity or reduce costs; Pilot programmes to test new business models or operating practices
(G) Enterprise Pipeline and New Business Creation
Support the creation and scaling of new hospitality businesses, strengthening local economic ecosystems and future growth. Projects could include: Incubation or accelerator programmes for new hospitality concepts; Support for community-led or cooperative hospitality ventures; Targeted support for NEET and underrepresented entrepreneurs.
HSF_How_to_Apply_-_Guidance_for_Applicants_v2.docx
Funded activity must demonstrate additionality, value for money, and deliverability, and must align with the strategic objectives and scope of the Fund. For queries on the application process or the scheme itself, please contact: HospitalitySupportFund@businessandtrade.gov.uk
Funding Availability Notice:
This programme is dependent on the availability of funding. Funds may be fully committed before all applications have been assessed, and the organisation reserves the right to close the application process or suspend new funding approvals at any time. Applicants should not rely on future funding opportunities, as there is no guarantee that further funding rounds will be made available.