Chancellor urged to back the West

bUSINESS leaders in the Westcountry have warned that support for the region’s hard-hit tourism and hospitality sectors must continue for many months to come.

As Chancellor Rishi Sunak prepares to deliver his second coronavirus Budget on Wednesday, Chambers of Commerce bosses in Devon and Cornwall are urging him to keep support measures in place until as late as March 2022.

Despite the roadmap out of lockdown and the potential for almost total reopening of all sectors by June 21, the Westcountry economy is likely to remain under huge pressure.

Stuart Elford, chief executive of Devon and Plymouth Chamber of Commerce and chair of British Chambers of Commerce South West, told the Western Morning News the support packages need to be extended until autumn this year – at least.

And Kim Conchie, chief executive of Cornwall Chamber of Commerce, said the Duchy’s economy has been so badly hit by the Covid-19 lockdowns it will need business support to continue for another year. Mr Sunak is widely expected to extend the furlough scheme, continue to provide business rate relief and keep the VAT holiday in place for the leisure, hospitality and tourism sectors.

There are also high hopes that he will extend the stamp duty holiday to keep the housing market buoyant, at least until June.

SOUTH West business leaders are calling on Chancellor Rishi Sunak to extend support for lockdown-hit businesses into the autumn – or even 2022.

Westcountry Chambers of Commerce want the Chancellor to use his March 3 Budget to continue safetynet schemes for businesses, particularly in the badly-affected tourism, hospitality and leisure sector.

There has already been much speculation that Mr Sunak will extend the furlough scheme, due to finish at the end of April, until the summer.

And it is expected he will continue other Covid-19 support measures, such as business rates and VAT relief, until June.

But Stuart Elford, chief executive of Devon and Plymouth Chamber of Commerce and chair of British Chambers of Commerce South West, said the support packages need to be extended until the autumn – at the earliest.

And Kim Conchie, chief executive of Cornwall Chamber of Commerce, said the Duchy’s economy has been so badly hit by the Covid-19 lockdowns it needs business support to continue for another year.

Both Mr Elford and Mr Conchie said they were disappointed by Prime Minister Boris Johnson’s “road map” announcement, setting out stages when the economy could reopen.

Mr Elford said: “The recently announced road map to recovery was broadly well-received by business, but it was disappointing that financial support wasn’t mentioned at the same time, so businesses will be turning a keen eye on the forthcoming Budget.”

And Mr Conchie added: “I was very disappointed that the PM’s road map did not give businesses any feeling there is a stable playing surface come what may in Covid ups and downs.”

So both men want the Chancellor to address the shortcomings in his Budget statement, with Mr Elford saying: “Businesses are facing a cliff edge as VAT and business rates are due at the same time that the furlough scheme comes to an end and any CBILS or BBLS loans taken out are due to be repaid.

“This is exacerbated for the leisure, hospitality and tourism sector that has been decimated during the pandemic. Businesses are keen to reopen and return to full operations, but it is not a case of simply flicking a switch and turning the lights back on. There are long lead times for supply chains, staff need to be brought back in proportion to demand and most businesses aren’t profitable until they are operating at full capacity.

“So we are calling upon the Chancellor to extend the packages of support available until the autumn at a minimum.”

He stressed: “We want to see the furlough scheme extended and the reduction in VAT for the leisure, hospitality and tourism sector remain, combined with the deferral of VAT and business rates payments .... now is not the time to raise business taxes, but to allow businesses to recover and thrive.”

Mr Conchie said he wants “categorical assurance” that the furlough scheme, business rate relief and VAT holiday will persist throughout the whole of the next financial year. In other words, until March 2022,” he said. “That would allow Cornwall’s businesses, and therefore the economy, to bounce back more quickly.”