Sacha: Chancellor has turned his back on night-time economy
ADVISER PREDICTS ‘TIDAL WAVE OF REDUNDANCIES’
RISHI Sunak has ‘turned his back’ on Britain’s cultural, live music and night time scene, Greater Manchester’s night-time economy adviser said.
Sacha Lord said the Chancellor’s winter economy plan measures ‘do not go far enough’ to protect businesses and is predicting ‘a tidal wave of redundancies’ towards the end of the year.
The measures proposed to MPs in the Commons today include extending the VAT cut for hospitality and tourism until March 31, 2021.
The Chancellor also announced a ‘jobs support scheme’ to replace furlough, which will see the government subsidising wages, as part of plans to protect ‘viable’ jobs amid the ongoing Covid19 pandemic.
But his plans still leave questions unanswered for industries such as nightclubs and live music venues, which remain unable to reopen. Sacha also had a stark warning for the future of the UK’s world-leading cultural scene, which he says has been ‘changed indefinitely’ as a result of the pandemic.
The hospitality industry has been left reeling this week following the announcement of a 10pm curfew, with many operators warning it will halve trade.
Industry bodies have been campaigning for more sector-specific support to help businesses survive its impact. Sacha said: “While these new financial aid measures are helpful, they do not go far enough to keep many businesses viable, and I predict a tidal wave of redundancies across the UK night time economy as we enter the end of the year.
“At the start of the crisis, the Chancellor assured us he would stick by all businesses, but today has turned his back on this commitment.
“There are still no answers for the live music venues and nightclubs who cannot reopen or who are bound by unviable restrictions, or for the musicians, performers and backstage freelancers who work within these sectors.
“Those caught in the midst of local outbreaks, including the hospitality operators in Bolton who have been forced to close, will undoubtedly suffer and the local lockdown support packages will not be enough to maintain their survival.
“It’s now time to acknowledge that many operators, especially independents who have no significant parental backing, will sadly close as a result of this pandemic.
“In hospitality alone, there are 900,000 workers still on furlough, and a further 1.3million people across the UK work within the nightclub industry.
“I can understand that for many operators, it will be easier to remove these individuals from payrolls completely than go under.
“The UK’s cultural, live music and night time scene is widely regarded as one of, if not the best, in the world, yet this pandemic has changed the landscape of the sector indefinitely.
“We now all need to work together to move forward, to adapt and overcome, and at the very least those at the top must now provide a plan to help those losing jobs.
“We need reassurance that the workers who will inevitably be out of work will be able to claim benefits easily and quickly, that they can apply for retraining schemes, grants and initiatives where possible, and that their mental health will be supported throughout this devastating time. “Lastly, while it is too late for many, going forward I urge the government to make these financial aid announcement s sooner to coincide with restrictions, if only for the mental health of the business owners involved.”