PUBS MAKE LOCKDOWN FUNDS PLEA
HOSPITALITY BOSSES CALL FOR FRESH CASH HELP FROM GOVERNMENT TO SEE THEM THROUGH TO MAY’S INDOOR OPENING DATE
PUBLICANS and restaurateurs across Wales have called for clarity around funding to help their venues survive until they are allowed to re-open.
The call comes after the Welsh Government revealed that from April 26 outdoor hospitality will be allowed to operate again for the first time since before Christmas as part of an easing of restrictions announced on Thursday night.
Decisions around indoor businesses will be made after May 17 but it is hoped they will be allowed to re-open by the bank holiday at the end of May.
But with an estimated 60% of independent businesses unable to operate on an outdoor-only basis landlords and managers in the industry are calling for further support to help the industry survive for up to a further two months without any income.
Chris Rowlands, who owns Bub’s bar and kitchen in Church Street in Cardiff, said: “Indoor opening is two months away so the first thing that pops into my head is: ‘Is there going to be any grant money made available to survive the next two months?’
“For them it’s 60 days – for us it’s £12,000 in rent, £4,000 in tax and NI and other costs. That’s what’s killing small businesses. It’s not being closed – it’s being closed with no support. We have a rent bill we’re negotiating right now that I have to pay for March, April and May’s quarter and that’s £17,500.
“I think we worked out using the economic resilience fund calculators that they provide and the calculations they suggest you use and we’ve lost somewhere in the region of £150,000 in that time and the money we’ve received is maybe £50,000.
“There has been two small economic resilience fund payments and there’s been some little top-ups of £5,000 from the council tax rates but they should have been there from day one, month in month out.”
A popular spot for craft beers and independent breweries, on a normal day before the pandemic the capacity of Bub’s was around 250 people with 20 tables.
Nowadays, however, that capacity is as low as 16 when social distancing and table service is factored in. As one business in a street full of fellow bars and restaurants Bub’s can only fit around four tables outdoors – something they did last year more for their loyal customers than for the financial benefits.
Rather than criticising First Minister Mark Drakeford, Chris believes the current circumstances stem from people failing to listen to the rules.
He said: “We can seat probably four tables outside. Last time we did I think we were one of the only pubs in town that did open outside – it was probably more of a case of something to do to be honest because the staff were going stir crazy.
“That came with complications because there were so few places open we did get a lot of people descend just desperate for a pint and to get smashed. We actually made the decision to close early when we were open just outside.
“We didn’t open past 8pm because by 8pm you had people bouncing around from place to place a bit worse for wear and they weren’t social distancing because they’d had too much alcohol.”
Simon Wright, co-founder of the Welsh Independent Restaurant Collective (WIRC), said his main concern centres around the £180m nondomestic rates linked grant previously announced to help support businesses like his.
While the Welsh Government’s Business Wales website said on March 25 that the funding will help “businesses with their costs up to March 31, 2021”, the page was later updated to say the same grants package “has been designed to support businesses through to the election on May 6”.
A Welsh Government spokesman said businesses will see “no interruption in the flow of financial support”.
Simon, who owns Wright’s Food Emporium in Carmarthenshire, said: “It’s clearly welcome that we do have some dates, a clear date for outdoor opening and prospective date for indoor opening. But we would definitely question why we’re two weeks later than the rest of the UK with outdoor opening given the fact that we knew that the virus is much less transmittable outdoors.
“We also know that we have problems in the warmer weather now with people gathering on their own accord outdoors and from our point of view we would consider it much better if people were able to take refreshment outdoors in controlled circumstances which would be the case when licences premises are open.
“The thing to remember is for outdoor opening that’s four weeks away. For four weeks that means no income for Welsh independent hospitality businesses.
“Both Scotland and England alongside their road map have restart grants. They have that certainty of funding to take them through this period of not trading. Our period is longer and we don’t have similar security so it’s potentially catastrophic for small hospitality businesses.”
For the minority of businesses that are able to open on April 26, Simon and WIRC predict they will only take, on average, a 35% turnover due to social distancing and extra measures. After months of living on the line it’s a risk that not all businesses will take, especially factoring in the cost of reopening again.
Tom Morgan, who runs three Bar 44 restaurants and Asador 44 with his family, said: “Those with outdoor areas you just have to think: is it viable with the numbers and the Welsh weather, especially with April showers and all that? What do you do if you’ve got a full place and it starts raining and you have nowhere to go?
“It’s tricky. But we’re a resilient lot and we’ll give it our best shot and I’m
sure all the other hospitality venues will as well.
“In Wales probably the only outdoor space [we will open] will be Cardiff – Bar 44 on Westgate Street to start with. But plans change all the time so we’ll just have to wait and see.
“The other problem is there’s a massive UK – if not worldwide – shortage of outdoor furniture and some of the prices have gone through the roof.
“It’s not going to be full capacity for a long time, I think, but we just need to get the doors open again.”
Like others Tom is just happy there is a date on the horizon, although he echoes others’ concerns about funding.
He said: “The Welsh Government have been fantastic with the support they’ve given the hospitality industry to date really and helped people navigate through lockdown which is very welcome and we’re grateful. But the big problem is they said in March when we applied for the non-domestic rates grant that they would cover us until March 31 and then overnight they changed their website without any warning.
“Basically after a lockdown of a year where they’ve helped businesses go through all the way and there’s light at the end of the tunnel for at least 60% of hospitality business in Wales who can’t open outdoors they are trying to get through the last two months of this.”
A Welsh Government spokesperson said: “Our generous package of financial support for Welsh businesses will continue throughout April and into May. Many businesses will already have received their full share of the £180m funding announced in mid-March upfront to see them through until May, for others, including in the hospitality and tourism sector, cash grants will continue to be paid during April as applications are confirmed.
“Businesses will therefore see no interruption in the flow of financial support, as we move cautiously to relax public health restrictions.
“The Welsh Government has made unprecedented levels of funding available to support Welsh businesses during these incredibly challenging times, with a full 12 month rates holiday package for those in the hardest hit sectors that goes considerably beyond the relief available to businesses in England.
“To date we have provided more than two billion pounds in business support during the pandemic, safeguarding 165,000 Welsh jobs.
“Another £200m in additional support for business has already been earmarked in the Final Budget 2021-22 – final decisions on this will be for the next administration following May’s Senedd elections.
“A pub, hotel or restaurant in Wales with ten staff would have been entitled to £45,000 in Welsh Government support to see them through from December onwards. This is on top of both our and our business rates relief scheme and UK Government support to cover staff costs.
“We have done all this at the same time as having to manage competing demands from businesses, the NHS and other public services, all struggling to meet the extraordinary pressures from the pandemic.”