THE Town Hall will step in with £1.8million worth of grants for pubs, nightclubs and theatres after coronavirus limits on capacity were extended for another month.

Venues have warned that this week’s postponement of so-called “freedom day” – the final lifting in Covid restrictions – will cost them thousands of pounds in lost revenue and add to the financial turmoil.

Islington announced last night (Thursday) that it was ready to help 95 places with grants in a bid to reduce the pain of another four weeks with strict controls on the number of customers they can have. The social distancing rules will not be lifted now until July 19 at the earliest.

Caroline Wilson, the council’s director of inclusive economy and jobs, said: “The venues include theatres, grassroots live music spots, comedy venues and independent pubs – all essential to creating and sustaining our vibrant evening economy in Islington.”

The council is taking the cash from its Cultural Support Fund – which was created with money from central government. Town Hall chiefs say they will still lobby for more money from Whitehall.

A statement said they were also now looking at grants for childcare providers and market traders.