Hospitality bosses say Treasury support ‘borders on insulting’ as firms call for more aid
Hospitality and leisure bosses have welcomed the announcement of a short-term support package for businesses but called for more.
Venues have been hit hard by cancellations as the public stays away from the capital in a last attempt to dodge the highly transmissible Omicron variant before Christmas.
After calls from industry bosses, Chancellor Rishi Sunak announced a fresh £1bn rescue package on Tuesday afternoon.
Pubs, bars and restaurants in England will be able to receive a one-off payment of £6,000 per venue.
The government will also cover the cost of statutory sick pay for Covid-related absences for small and medium-sized employers.
However, Michael Kill, chief executive of the Night Time Industries Association, said: “Every pound of help is much needed – but this package is far too little and borders on the insulting.”
“Businesses are failing, people are losing their livelihoods and the industry is crippled. Mixed messaging, coupled with additional restrictions, have had a catastrophic impact on our sector over the last two week,” he added.
It comes as it has been reported the government is looking at introducing further restrictions to curb the spread of Covid after Christmas.
Businesses had called for measures to include business rates relief and freezing the current rate of VAT, in addition to recovery grants.
Emma McClarkin, chief executive of the British Beer and Pub Association, said the package would be a “vital lifeline for many” and ministers should continue to “monitor and support” firms.
She added: “Ensuring our pubs and brewers continue to have the support they need, including further financial support if further restrictions are introduced, along with a clear timeline for the lifting of any such measures.”
Steven Alton, CEO of British Institute of Innkeeping, called for ongoing support in the form of business rates relief and an extended period of low VAT as pubs’ “recovery will be significantly extended due to the lost trade from Christmas.”
Breweries and retailers have been left out in the new support, trade bodies said.
Jace Tyrrell, CEO of the New West End Company, which represents 600 brands in the central London district, said it had been a “hammer blow” to see empty streets when businesses had hoped for a “bumper Christmas”.
The latest tranche of support was “simply not enough,” Tyrrell said, calling for measures for shops as well as hospitality venues.
He added: “There is no relief for the retail industry, which has been equally hard hit by a lack of footfall. The Treasury must wake up to the fact that viable businesses will be forced to permanently close their doors unless more robust temporary measures are put in place to ease the financial pressure.”
Sacha Lord, co-founder of the Warehouse Project & Parklife and Greater Manchester’s night time economy advisor, called the package “a disgrace and offensive.”
He has called for an immediate reintroduction of furlough and a freeze on bounce back loan repayments for a year, as well as rates and VAT relief.