St Peters Quarter BID backs call for 'Special Support' measures for Retail, Hospitality and Leisure businesses

From Wednesday 2 December, England will fall back into a Tiered system, with Derby being placed under the ‘Very High’ COVID Alert Level 3.

We recognize this places irrevocable pressure on hospitality businesses but also those in retail and leisure sectors. UKHospitality has already warned that the new Tier 3 system will result in 94% of hospitality businesses becoming unviable by March 2021. In Tier 2 it is 75% and even at Tier 1 25%.

We agree that sector specific measures require sector specific support, and we support the ‘Bounce Back Better’ manifesto which outlines a range of packages which will provide a vital lifeline for hospitality, retail and leisure businesses alike. 

The manifesto follows intense and thorough talks with businesses, Business Improvement Districts [BIDs], Local Authorities, destinations and industry bodies to provide options of support to help the UK economy ‘Bounce Back Better’.

FOUR ESSENTIAL ASKS IN THE ‘BOUNCE BACK BETTER’ MANIFESTO”:

1. ONE-OFF GRANT FOR RETAIL, LEISURE & HOSPITALITY BUSINESSES

Local Authorities lack the administrative and payments infrastructure required to facilitate monthly financial support model proposed by government for eligible businesses in Tier 2 and Tier 3 – many are businesses are receiving funds too late, or worse not at all.

We ask government … 

to provide a one-off ‘Bounce Back’ grant of up to £15,000 for retail, hospitality and leisure businesses in Tier 2 and Tier 3 across England and Wales with a rateable value of up to and including £150,000. This would support 137,000 businesses vital funds delivered in a manner Local Authorities are equipped to distribute at a total maximum cost of £2.05bn.

2. PAUSE NATIONAL INSURANCE EMPLOYER CONTRIBUTIONS FOR FURLOUGHED EMPLOYEES 

For the furlough scheme investment to date of £47m to be fully effective, business support must reflect short and long term challenges. While employees receive 80% of their salary through the extension of the furlough scheme, businesses are still paying out for National Insurance, placing greater strain on survival.

We ask government…

to remove the burden of National Insurance from employers whose staff are on furlough, saving the average business £2,000 per month until 31 March 2021. 

3. EXTENSION OF 100% BUSINESS RATES HOLIDAY FOR 2021/22  

The ‘payment holiday’ for retail, hospitality and leisure businesses with a rateable value less than £51,000 earlier this year was an extraordinary and critical measure saving each business up to £25,000, a total tax cut worth over £1bn.

We ask government …

to extend the 100% business rates holiday into 2021/2022 for businesses in the retail, hospitality and leisure sectors. Every pound saved is a pound to help businesses stay trading and retain staff.

4.EXTENSION OF VAT REDUCTION SCHEME  

The cut in VAT from 20% to 5% is a major boost for the hospitality sector enabling businesses to pass on a £4.1 billion saving onto consumers. With a vaccine becoming a reality in the coming months, our Bed and Breakfasts, hotels and restaurants could be a vital catalyst to local economic recovery.

Research by CGA for UKHospitality, the British Beer and Pub Association and the British Institute of Innkeeping found support on VAT and business rates are top of hospitality’s essential business support needs.

We ask government…

to extend the VAT reduction to 5% for Hospitality from 1 April 2021 up to and including 31st march 2022.

For more information on the campaign please click here.

Support the campaign by sharing the ‘Bounce Back Better’ manifesto.