‘Hundreds of venues will need more to stay afloat’

WARNING TO CHANCELLOR AFTER LATEST SUPPORT IS ANNOUNCED

CHANCELLOR Rishi Sunak has been warned that a ‘sticking plaster’ package of business support will not be enough to ensure the survival of hundreds of pub and restaurant businesses.

Mr Sunak announced a £4.6bn package of support after the country went into a new period of national lockdown that is expected to last until the end of February at least.

The support includes the extension of grants of between £3,000 and £9,000 for companies in the hospitality, leisure and retail sectors that are unable to open.

But his announcement received a mostly lukewarm reception, with business groups saying that longerterm solutions were needed to ensure the survival of previously healthy businesses that have not been able to open for months.

Adrian Waddell, chief executive of Newcastle city centre business group NE1, said: “The Government needs to channel the same level of effort into supporting businesses as it has into supporting the nation’s health and there needs to be a detailed and strategic plan not just for the next few months but for the next financial year that will give businesses some certainty and an ability to plan for the future.

“We welcome the financial package the Chancellor has announced today for the third lockdown and we know it will help some businesses get through the next few months – but this help is needed beyond the spring.

“Businesses need clarity and a degree of certainty. Two measures we know have already been effective, the business rates relief package and the VAT rate reduction to 5%, should be extended into the next 2021/22 financial year. If implemented, this would offer support for businesses in the medium to long term, protecting jobs and livelihoods and ensuring that businesses are in a position to bounce back when the restrictions are eventually lifted and the vaccine has been rolled out.”

The call for longer-term help was backed by UK-Hospitality chief executive Kate Nicholls, who said: “While this announcement is most welcome, make no mistake that this is only a sticking plaster for immediate ills – it is not enough to even cover the costs of many businesses and certainly will not underpin longerterm business viability for our sector. To address the inevitable and existential challenges that hospitality faces, we need confirmation of extensions to the business rates holiday and of the 5% VAT rate.

“On its own, today’s support is not enough. Businesses need a longerterm economic plan and it would befit the crisis that we face if the Chancellor brought forward his Budget to make the announcements necessary to reassure businesses and allow them to plan their survival.” The Government announced that around 600,000 retail, hospitality and leisure sites will be able to claim a one-off grant of up to £9,000 as part of a £4.6bn package to help support the High Street as new lockdown measures announced on Monday take hold. Mr Sunak also announced a further £594m for local authorities to support businesses not eligible for the grants.

But pub campaign group Camra has warned that a ban on takeaway pints during lockdown could be the “death knell for many pubs”, and the Federation of Small Businesses said the package “just won’t be enough for businesses who are already under the cosh and on the brink”.

The Chronicle has launched the Save Our Scene campaign to highlight the dangers facing the North East’s famed nightlife businesses – a major part of the region’s appeal to the rest of the country.

We are calling on the Government to provide long-term support to hospitality and cultural businesses in the region, and for local people to support those businesses where possible during the lockdown.