Subsidise takeaways to help the industry – MP
THE Government could subsidise takeaways to help struggling hospitality businesses, a North East MP has suggested.
Catherine McKinnell, MP for Newcastle North, said funding for takeaways would be more help to bars and restaurants than the “Eat Out to Help Out” scheme introduced by Chancellor Rishi Sunak, which subsidised sit-down meals at venues.
Speaking in Parliament, she said: “Many restaurants have pivoted to providing cook-at-home and takeaway offers with contact-free delivery or kerbside collection.
“In these strange times, Geordies can enjoy takeaways from all manner of venues across our city, from the Thyme Square cafe on Station Road, with its carry-out Sunday lunches, to the cook-at-home offerings from 21 and the Michelinstarred House of Tides on the Quayside.”
But she said Covid restrictions were “incredibly challenging” for hospitality firms, and a survey had found four out of 10 believed they would stop trading by the middle of 2021. Ms McKinnell said: “August’s Eat Out to Help Out scheme, although clearly popular at the time, was seemingly designed with little regard to whom it would help and the incentives that it would create. Rather than supporting those who are struggling the most, it potentially ended up being an untargeted giveaway to customers and businesses.
“It also made eating out much cheaper relative to takeaways and, in retrospect, helping restaurants by targeting subsidies at takeaways might have been more effective at boosting sales while maintaining the social distancing that is so required.”
She was leading a debate about Government support for the hospitality industry, attended by MPs across the country.
Ms McKinnell called for the creation of a dedicated Minister for Hospitality in the Government, an extension of the business rates holiday – which means most hospitality businesses do not need to pay business rates this year – and an extension of the temporary 5% VAT rate.
Business Minister Paul Scully said: “We continue to work together with the sector across Government to make sure that we can strike the right balance between the Covid-19 restrictions and the corresponding business support measures.
“As we have heard, we responded with an unprecedented package of support worth a staggering £280bn, which included the grants, the furlough scheme, the various loan schemes, the business rates holiday, VAT deferrals, and of course the Eat
Out to Help Out scheme.
“On top of that, we released additional funding worth £4.6bn to help businesses through the current lockdown, which we estimate will help 600,000 hospitality businesses. We have also taken action to protect businesses by placing restrictions on landlords using commercial rents arrears recovery to enforce unpaid rents on commercial leases. Importantly, we have kept all the support measures under review to ensure that as far as possible, they have kept pace with the changing Covid-19 situation and the need to flex restrictions accordingly.”