Some city centre businesses including major national retail chains will not survive the latest lockdown, says the chief executive of Plymouth City Centre Company.
Steve Hughes said businesses already teetering on the edge after months of uncertainty and two previous lockdowns may not outlive the latest restrictions.
He was speaking as stationery and greeting card chain Paperchase, which has a large outlet in Plymouth鈥檚 Drake Circus Shopping Centre, warned it was on the verge of collapsing into administration.
And Mr Hughes said more could follow, although he said that if retailers can weather the current Covid-19 lockdown Plymouth鈥檚 city centre is well poised to bounce back.
But there is an immediate problem from what Mr Hughes described as a 鈥渉ammer blow鈥 to retail and hospitality businesses. He said: 鈥淚t鈥檚 too early to say how the latest lockdown will impact on businesses exactly, but undoubtedly some will not make it.
鈥淲ithout further help, big chains and independents are at threat, and particularly the hospitality sector, because Covid restrictions mean they can鈥檛 trade successfully.
鈥淪o from the point of view of Plymouth city centre, then undoubtedly there will be more casualties. Some will be among the big chains which can no longer afford to have the overheads of bricks and mortar premises.鈥
Since the coronavirus pandemic arrived in the 海角视频 Plymouth city centre has lost the likes of Brighthouse, Laura Ashley, Carphone Warehouse, Cath Kidston, Cafe Thorntons and Edinburgh Woollen Mill, with Debenhams and Peacocks staging closing down sales.
Prime Minister Boris Johnson pitched England into further lockdown misery on January 4 as coronavirus cases threatened to overwhelm the NHS.
All non-essential retail must now stay closed and hospitality businesses can only offer takeaways, causing more problems for city centre businesses in Plymouth and elsewhere.
Chancellor Rishi Sunak moved swiftly to arrange for 拢4.6billion to be handed out in grants of between 拢4,000 and 拢9,000 to retail and hospitality businesses, with a further 拢594million going to local authorities to distribute to other firms that can鈥檛 access this help.
But Mr Hughes said that while welcome, this lifeline is not sufficient, and businesses need a long-term plan and continuation of VAT and business rates holidays, and, ultimately, a reform of the business rates system.
And he prays for an end to lockdowns so that an events programme to jump-start the city centre鈥檚 economy can proceed in 2021. He said: 鈥淭he announcement of grant support, from the Chancellor, is very welcome, but is is a short-term fix and for many this will not be enough.
鈥淔or some businesses this will be very welcome, but for others 拢4,000 won鈥檛 get them through this. especially if they find that in April they have to pay rates again.
鈥淭his Government needs to set out a clear long-term plan so businesses know where they are, and this continual open-close-open-close lack of certainty is killing them. They need to extend (support) for the whole year, but ultimately the business rates system needs reform.鈥
How to contact William Telford and Business Live
Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
To contact William: Email: william.telford@reachplc.com - Phone: 01752 293116 - Mob: 07584 594052 - Twitter: - LinkedIn: - Facebook:
Stay in touch: BusinessLive newsletters have been re-designed to make them even better. We send morning bulletins straight to your inbox on the latest news, views and opinion in the South West. Get our breaking news alerts and weekly sector reviews too. Sign up now - it's free and it only takes a minute. To sign up for Business Live's daily newsletters click .
And visit the Business Live South West LinkedIn page
Mr Hughes stressed that 15,000 jobs depend on the retail and hospitality sector in Plymouth鈥檚 city centre and waterfront and said: 鈥淭hat鈥檚 a huge part of Plymouth鈥檚 economy.
So he urged the public to support Plymouth businesses that can operate online or offer click-and-collect services or deliveries or takeaways, and use the too.
And he said that if they can survive Lockdown 3.0 then Plymouth could bounce back, with businesses 鈥 such as the recently arrived Hugo Boss and German Doner Kebab 鈥 keen to invest, and a programme of infrastructure improvements already under way.
And he hopes a programme of planned city centre events can still take place from Easter onwards 鈥渄epending on health and safety advice鈥.
He said: 鈥淥nce we can reopen I鈥檓 confident Plymouth city centre will be in a strong position and recover, with a huge programme of investment on the way and businesses still looking to invest in retail and hospitality outlets. I just sincerely hope this is the last lockdown.鈥
