Business is calling for more help and clarity from the Government after the cabinet deferred any decision on further COVID restrictions yesterday.

Hospitality and entertainment businesses in particular were facing critical decisions in the coming hours about whether to go ahead with or cancel events over the holiday period

Greater Manchester’s Night time economy advisor Sacha Lord tweeted:

“Tomorrow, operators need to order stock and create staff rotas for Xmas.Many are sat in limbo, not knowing what to do.
They are fearful for their future, staff don’t know if they will still have jobs.
This is no way to run a country.”

Cabinet minister Stephen Barclay said the chancellor had met met business leaders who are calling for more financial support on Monday evening. He told the BBC the government would “say more about this later today”.

The Federation of Small Businesses (FSB) has today released a ten-point plan of options for economic support that Ministers should urgently consider as current Covid restrictions take their toll, and amid speculation about further measures.

The list includes necessary steps to support sectors such as hospitality which are already bearing the brunt of lost trade, as well as other options to help small businesses as a whole continue to function through the New Year and into the Spring.

FSB is calling for 100% Business Rates relief for eligible retail and hospitality businesses, as well as a cut in VAT to 5% for tourism and hospitality. These sectors have already been hit hard by the cumulative effects of working-from-home guidance, cancelled Christmas parties and some customers choosing to reduce outside contact before Christmas. The hospitality sector alone accounts for 3.2million jobs in the UK.

Those in supply chains to these sectors should also be supported, including through unlocking funds from the Business Rates Relief Fund, which was announced in March but is still not up and running.

For the UK’s 5.5million small businesses more widely, FSB’s proposals – which have been put forward in a series of high-level meetings with ministers and officials – include reinstating the Statutory Sick Pay (SSP) rebate, a VAT deferral, the reintroduction of the Jobs Retention Bonus, and a Hardship Fund in England to match similar support in Scotland and Wales.

FSB National Chairman Mike Cherry said: “It is incumbent on Ministers to consider an Economic Plan at the same time as it publicly debates further health restrictions.

“At the very least, Government should already be reducing the fixed tax burden levelled on businesses when it is actively attempting to reduce social contacts – if more onerous measures are being considered, then it is essential to consider more comprehensive support for businesses and jobs at the same time, such as re-introducing the Jobs Retention Bonus.

“In hospitality, we’re hearing of dire examples from our members of cancellations and no-shows on a vast scale, stock having to be thrown away, and staff hours reduced. This, in turn, is hammering firms in the supply chains of these businesses.

“Failure to introduce business support to match the scale of public health restrictions will be damaging to the economy, jobs and communities.”

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