Sacha Lord, the Night Time Economy Adviser for Greater Manchester, has called on the Chancellor to ‘double down and remember the UK’s lost sectors’ ahead of the upcoming Budget on March 3.
“When the hospitality, arts and cultural sectors reopen, they won’t return to the same financial footing as they were pre-pandemic,” Lord says.
“Everything may look good ‘front of house’, but the underlying debt burden from rent arrears, loans and VAT accrual for these businesses is substantial and for many, unmanageable.”
“By the time the Budget is set on 3 March, some areas of the North West including Greater Manchester will have been in some form of lockdown for nearly a full year.”
“Many businesses will have taken on credit, whether that’s through the Government loan schemes, or other debt racked up in a bid to keep companies from going under. These operators won’t be able to repay this debt quickly, and I anticipate we’re looking at a period of three to four years before many feel financially stable or in a position to fully repay on loans.”
“The support given to these industries throughout the crisis has been welcomed, but I’m now looking at the Chancellor to double down on efforts and recognise the importance of these lost sectors on the UK economy. The Government must extend the existing range of measures to provide assurance and give confidence to those working within them.”
“Where things stand, by the end of April the VAT reduction, rates holidays, changes to insolvency measures and furlough scheme will have all ended. Continuing this support and extending these schemes on a rolling twelve month basis will be crucial to the survival of the majority of businesses. Without this, we will see a perfect storm of debt repayments, and whole subsections of our economy fail.”
“In addition, these sectors have been more damaged by leaks and rumour than any other and I urge the Government to make these announcements concerning financial support sooner rather than later, to save the inevitable rumour mill causing untold anxiety and stress.”
“Businesses need to be able to prepare now, not only from a financial perspective, but on a personal level, to gain a sense of stability and stave off the mental health aspects of not knowing if your business will survive or if you have a job to return to. Some employees will have been furloughed for nearly 11 months in March.”
“We have seen last minute decisions, u-turns and short term pledges throughout this pandemic, but our most loved sectors must now get the respect they deserve and a clear roadmap of intentions as we begin to move out of this crisis.”
