Hospitality Calls For Greater Support To Help Survive Bleak Winter Ahead

UKHospitality has written to the Chancellor of the Exchequer Rishi Sunak warning that additional financial support is absolutely vital to ensure hospitality businesses survive a bleak winter and be in a position to help power economic growth next year.

Ahead of the Chancellor’s Spending Review, the trade association is warning that hospitality is set to lose the majority of its ‘golden quarter’ with Christmas sales severely depressed, as it then heads into the worst quarter for sales, from January through March. The removal of the Job Retention Bonus (JRB) has also materially damaged businesses’ ability to survive and creates a £2.1 billion black hole in the sector’s finances in February.

The letter follows the release of a new survey of hospitality businesses which shows that, by February 2021, and without further Government support, around 600,000 jobs will be lost against employment figures from the same month this year.

The letter calls on the Government to act in five areas to protect hospitality businesses:

  • Announce a successor scheme to JRB as soon as possible, with an early drawdown facility
  • Extend the business rates holiday for a further year from April
  • Continue the VAT cut for hospitality and tourism for the duration of 2021
  • Broker a workable solution on the huge rent debt hanging over the sector, supported by a moratorium extension
  • Maintain the VAT Retail Export Scheme.

UKHospitality argues that this package of additional financial support will put the sector in a position to rebuild next year and continue its position as a major contributor to economic and social wellbeing across all regions of the UK.

UKHospitality Chief Executive Kate Nicholls said: “The support received so far from Government remains greatly appreciated, including recent announcements on the extension of furlough for our teams and grants for closed businesses. Yet these do not go far enough to protect businesses’ bottom line, and, in the case of the removal of the Job Retention Bonus, actively damage their ability to survive.

“The consequences of the withdrawal of the JRB are severe. While the sector has done its utmost to retain staff, almost half of businesses believe that they will now be forced to make redundancies because of this decision.

“More broadly, with the right package of support, the Chancellor can help the sector navigate the challenging landscape ahead, protect as many viable businesses and jobs as possible, and allow people to enjoy safe and welcoming hospitality across the country.”


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