UK Chancellor of the Exchequer Rishi Sunak announced on Tuesday that the UK Treasury would make £1B in support available to the businesses most impacted by Omicron, mainly in the hospitality and leisure sectors. Businesses will be eligible for one-off grants of up to £6,000 per premise, while the government will cover the costs of mandatory sick pay for Covid-19 related absences from small and medium-sized employers across the UK. 

When asked about further support in the event of a post-Christmas lockdown, Sunak said the Treasury will respond to the situation proportionately and keep things under constant review. We can't rule anything out, he said. 

Market Reaction

GBP has not seen any notable reaction to the latest announcement from Rishi Sunak, though it does raise the possibility of a more proactive fiscal stance from the UK government in the event of a stricter lockdown which would remove some downside risk to the economy.