Small firms hit by Omicron concern Small businesses have seen sales drop in the run-up to Christmas after the Government urged the public to work from home and cut down on social contact due to concern over the Omicron Covid-19 variant. A decline in footfall across town centres has hit retailers, entertainment venues and hospitality businesses that are no longer being supported by the grants and support schemes previously put in place by ministers. Baroness McGregor-Smith of the British Chambers of Commerce said it was "baffling" that the Treasury had not stepped up to help offset restrictions by providing financial support. The Telegraph highlights that VAT for hospitality and tourism, which was cut to 5% last year as an emergency measure, now stands at 12.5% and is set to rise to 20% in April. Retailers were previously able to claim 100% business rates relief but the discount has since been cut to 66% and will end in April.