Business support package offers a ‘glimmer of hope’
THE co-owner of a number of hospitality venues in Nottinghamshire says the new support package announced by the Government gives his industry a glimmer of hope.
Jono Edwards, who runs eight venues including Andwhynot, Canvas, The Cheeky Monkey, Industria and The Red in Mansfield, praised the new measures after conceding businesses like his could “fall from a cliff edge”.
In an announcement on Thursday, Chancellor Rishi Sunak had outlined the support on offer for businesses operating in Tier Two restrictions.
Businesses across the hospitality sector under Tier Two did not know what support would be offered to compensate for trade being decimated.
Mr Edwards said this drop in trade – around 50 percent on normal levels for his venues – made him think he would be “better off in Tier Three”.
However, following the Chancellor’s announcement, the venue boss says he feels a lot more confident for the future.
“Before the support package from Rishi, my personal thoughts were that we would be better off in Tier Three,” he said.
“This is because Tier Three would have enabled us to keep a lot more of our staff through financial support.
“We felt we were going to fall off a cliff edge on October 31 without this announcement, because the earlier job support scheme did not help us.
“However, since this new support package has been announced by the Government we’re a lot more confident.
“We were trading down anyway because of Covid, but when Tier Two kicked in most of our venues were operating 50 percent down.
“We were extremely nervous about how we were going to keep our workforce intact, but this has given us a glimmer of hope.
“Tier Two has decimated the industry because people don’t want to be outside in the current weather.
“We have been installing outdoor heaters and a lot of businesses are adapting to the Tier Two restrictions, but there’s not a lot of customers coming in the doors.
“If we can stay in Tier Two with the new support package, I feel more confident about the future and being able to retain our staff.”
Under the new package, struggling businesses in Tier Two can take advantage of the new jobs support scheme – allowing employers to contribute just five percent of wages to staff unable to work with the Government picking up the remainder of the fee.
As part of the job support scheme,
employees who are unable to work due to falling demand can receive up to two thirds of their usual income.
Employers will also continue to receive £1,000 grants in the job retention scheme, while grants of up to £2,100 a month are on offer for businesses set to be adversely impacted by the new measures.
The move has been welcomed by the East Midlands Chamber and has been described as a significant improvement for businesses.
Scott Knowles, chief executive of the Chamber, said: “We welcome the Government’s intervention, which signals a very significant improvement in the support available to businesses struggling with the impact of increasing restrictions across the UK.
“We have been campaigning for greater support for businesses that would be very much commercially viable if it wasn’t for the restrictions imposed on them, but are now struggling due to the large falls in demand they have witnessed.
“A number of the steps announced today, including the lowering of employer contributions and the number of hours worked in order to qualify for the new Job Support Scheme, responds directly to our calls.
“Backdated grants for hospitality firms in Tier Two and enhanced grants for the self-employed will go some way to alleviating pressure on many of those who have been particularly vulnerable to the economic impact of the pandemic.
“However, it should be noted that this is an evolving situation and the Government must be ready to update policies accordingly in order to help businesses navigate the difficult months ahead and keep people’s jobs secure.
“Ultimately, everyone wants a safely functioning economy and this is the big picture we should be working towards.”
Other measures announced by the Chancellor include further grants for the self-employed, with the maximum grant on offer rising from £1,875 to £3,750.
Chancellor Rishi Sunak said: “I’ve always said that we must be ready to adapt our financial support as the situation evolves, and that is what we are doing today.”