Licensed trade needs cash now to survive
IT’S very much a moving feast for hospitality just now but, as we’ve alluded to already, Christmas is pretty much over for us before it’s started.
Even if there are no further restrictions imposed, we will not get the business we were hoping for during the key festive trading period – which, in turn, would have seen us through the traditionally quiet first quarter of 2022.
We appreciate that the situation is difficult for every business across all sectors – not just licensed hospitality. But we have been hit particularly hard since the start of the pandemic and, in my opinion, suffered disproportionately having invested heavily in measures to keep our customers safe and followed all the rules set down by the Scottish Government.
So it’s frustrating to find ourselves in arguably a worse situation than we were a year ago.
Public Health Scotland’s press statement last week – advising people to defer Christmas parties, endorsed by the First Minister – killed Christmas for hospitality.
Again, it’s the mixed messaging we’ve come to expect from our leaders. No clear instruction to shut down yet they’re effectively shutting down anyway as people follow the “advice” to cancel parties and reduce contact with others.
Shutdown by stealth, as the SLTA said earlier this week.
This time last year, we were benefiting from government grants and the furlough scheme was in place. We know £100million has been earmarked to help us, the food supply chain and others but we are still waiting for clarification on this.
Yes, any financial help is welcomed but while £100million sounds a lot, it will only touch the sides. We need aid and we need it urgently – we can’t afford to wait until next year.
The UK Government must step up to the plate as we hear from various sources, including Deputy First Minister John Swinney, there could be more restrictions on the way.
Research conducted over the last week has revealed that, in Scotland, a typical hospitality business is experiencing takings down 30 to 40 per cent. On average, businesses have lost sales of £65,000 during December alone.
The average business grant or lending required to survive is £58,000. Yet 85 per cent tell us they are unable to borrow more money and 92 per cent say further grants or lending will be required to survive until March.
How many will survive? Do we want to preserve licensed hospitality in Scotland? We are at breaking point.
We need more financial support and this has to come from Westminster.
Reinstatement of the furlough scheme, operator grants and a reduction in VAT are imperative – and imperative now.