Groups representing businesses in three North East city centres have written to the Chancellor to demand a “life support” package for the region’s pubs, clubs and restaurants.
The Business Improvement District groups in Newcastle, Sunderland and Durham have told Rishi Sunak that hundreds of despairing pubs, clubs and restaurants face being wiped out because of new coronavirus restrictions and the withdrawal of Government support.
A letter from Adrian Waddell, CEO of NE1 Ltd, Sharon Appleby, the head of business operations at Sunderland BID, and Adam Deathe, manager of Durham BID, highlights the significant, negative impact which has been further worsened by additional measures imposed earlier this week.
And it calls for rescue measures that would include a relaxation of the 10pm curfew for some venues, an extension of the furlough scheme for hospitality businesses, plus other forms of financial support.
The groups acknowledge the need to control the virus, but say an industry that employs more than 10,000 people and contributes nearly £680m every year to the regional economy has been unfairly targetted, given low infection rates coming from hospitality venues.
They have also told the Chancellor that that the Job Support Scheme set up to replace the furlough scheme will see only limited take-up because many operators will be unable to reach the hours needed to make it worthwhile.
The letter says: “Many consider the restrictions, bringing their businesses to an effective standstill, are disproportionate. We are beginning to see despairing operators simply shutting their doors with the very realistic prospect of staff redundancies following at the end of October, when furlough stops.
“These are cash businesses typically operating on low margins. Today, for many, cashflow has all but dried up. Please urgently consider a tailored package of support for this sector.”
Most Read
It adds: “These businesses in our region are, almost without exception, well-run and professional operations. It is essential they remain in business and, for those running them, it matters they see a future beyond the carnage they are currently experiencing.
“Hospitality sector fallout widely impacts our already damaged, interrelated town and city ecosystems. The importance of this cannot be overstated. The sector provides the ‘buzz’ that makes our cities fun and attractive places, including for students (we are all university towns), workers and other visitors.
“Once restrictions are lifted, we will be relying heavily on this sector to bring life back to the high street. In the meantime, the hospitality sector needs its own life support.”
Venues such as As You Like It in Jesmond, the Peacock in Sunderland and some of the sites around the region run by the Vaulkhard Group are among those that have closed indefinitely because of the current circumstances.
But operators point to the low infection rates coming from the sector compared to others, saying that weekly Covid-19 infection numbers show that food outlets and restaurant settings recorded 12 incidents, compared to education setting which had 18, workplaces which had 20, and care homes which had 36. Just hospitals and prisons recorded lower numbers.
The BID groups have asked for an extension to the ‘eat in’ 5% food VAT relief scheme beyond next March and a relaxation of the 10pm curfew that would allow restaurants to provide a second dinner service to customers, potentially doubling the takings they can currently achieve.
The Treasury has been contacted for comment.