Chancellor Rishi Sunak must step up and provide an urgent package of measures to support Bristol businesses as they suffer the effects of another Covid-hit Christmas, according to West of England Metro Mayor Dan Norris.
His call for a package of support until the end of January to get businesses across the region through what is likely to be a very tough trading period for many was backed by the city’s night-time economy czar Carly Heath and a group of organisations including Bristol City Centre BID (business improvement district), tourism direct marketing organisation Visit Bristol and Business West, which runs Bristol Chamber of Commerce.
With Bristol’s key hospitality and leisure sectors yet again being buffeted by Covid-related restrictions, Mayor Norris said the “lockdown by stealth” was crippling the West of England’s economy.
He has written to Mr Sunak demanding action increasing numbers of Christmas parties and get-togethers that many hospitality firms rely on at this time of year are cancelled – leaving pubs, restaurants and hotels facing another fraught festive season.
BID, Visit Bristol and Business West have also written to Mr Sunak and Prime Minister Boris Johnson, seeking support for the city’s hospitality sector.
They were joined by BARBI (British Association of Restaurants, Bars & Independents), nightlife group Bristol Nights and Bristol Food Union.
The letter urges the Chancellor and PM to consider and put in place:
- Business rate relief at 100% for all the affected sectors until next March
- Extending the reduced level of VAT for tourism, leisure and hospitality sector beyond March
- Allocate extra funds for local authorities to enable the provision of support grants to businesses being affected by the changes in guidance.
- Financial support, including sector specific furlough, for those employed and self employed who are affected by the current Omicron situation.
- A clear commitment to adapt support to reflect the impacts that businesses are suffering as the population is being kept safe.
- Clear and consistent articulation of the rationale behind any further restrictions or guidance that might become necessary
Urgently address the limitations of the Live Events Reinsurance Scheme to support venues experiencing damaging levels of cancellations.
Mayor Dan Norris, pictured, who has responsibility for jobs and skills, said: “I fully support the campaign to get Britain boosted. But let’s follow the science. I back boosters but their full effect doesn’t kick-in until after a fortnight.
“So, with the best will in the world, even if we meet the ambitious targets there is a lag until people get maximum protection.
“That’s why I’m calling for a “business booster break”, a time-limited package of support until the end of January enabling viable businesses to survive this unofficial lockdown as people vote with their feet.”
He said it was clear hospitality was getting another hammer blow.
“I also fear for the fitness sector such as gyms in the new year. It is easier to save a business than start from scratch – so the government should step up now.”
Carly Heath, who was appointed in March to lead the city’s entertainment and hospitality sector’s recovery from the devastating effects of the pandemic, told BBC Radio 4’s The World At One, that Bristol club and bar owners were “very worried” about their prospects.
She said the impact would not just be felt in the weeks running up to Christmas.
“How are they are going to weather this storm going into January, February and March next year,” she said.
“We are seeing a lot of temporary staff being let go as the bookings just aren’t there. The irony is just three weeks ago we still had a staff shortage.
“It’s utterly depressing for those businesses that want to look after their staff. We need some form of financial support. There is a work-from-home directive but what has led to is the mass cancellation of Christmas parties.
“People aren’t going out to visit their friends and ticket sales for gigs are right down.”
She said the industry needed the Chancellor to bring in VAT and rates relief, additional restriction grants and sector-specific furloughs.
Their comments echo those of business groups, such as the British Chambers of Commerce and industry bodies.
Trade association UKHospitality is warning of drastic revenue drops in December, a key trading period for the sector, as panic about the Omicron variant spreads. It has reported a drop in trade of a quarter – with venues expecting a further drop of the same amount.
These figures do not take into account the financial losses incurred by wasted stock, unnecessary labour and other commodities arising from cancelled events and bookings, which may not be covered by insurance, it said.
To ease their plight, the organisation is also calling on Chancellor Rishi Sunak to bring in measures to support the industry.
UKHospitality also said that prior to the emergence of Omicron and ‘Plan B’ restrictions, figures showed that the industry was on track to reach 95% of pre-pandemic trade levels.
Since then consumer confidence has plummeted and businesses are facing unprecedented and catastrophic levels of cancellations.
UKHospitality chief executive Kate Nicholls said: “Christmas trade is always crucial for the hospitality industry, making up as much as a quarter of the year’s profit for many businesses.
“Last year Christmas was cancelled and so much rested on this December period for businesses already staggering under a burden of debt incurred from the pandemic and facing rising costs across the board.
“If operators are unable to trade profitably over the next month, many will simply not survive – and those that do make it through face a return to 20% VAT in April.
“The government must step in now and provide measures that support the businesses and jobs in the sector – by committing to keeping VAT at 12.5%, suspending business rates payments for the first quarter of 2022 and reinstating recovery grants.”
The British Chambers of Commerce (BCC) said businesses had “heard nothing from the Treasury since this new round of Covid interventions arrived over a week ago”.
It added that it was crucial more support was made available as shops, theatres and pubs see “their vital festive income melt away in front of their eyes”.
