Chancellor Rishi Sunak has announced further funding for workers and businesses in the face of changing coronavirus circumstances.
Chancellor of the Exchequer, Rishi Sunak
There will be:
- Additional cash grants of up to £2,100 per month for, primarily, hospitality and leisure businesses in high-alert areas
- Changes to the Job Support Scheme (JSS), reducing employer contributions, and minim hours requirements
- Extra grant aid for the self-employed
There was a mixed reaction from the Society of Independent Brewers (SIBA). Chief executive, James Calder, said: “Today’s extension of the JSS scheme, announced by the chancellor, will help retain jobs in pubs and bars over this incredibly difficult winter period. Separately, the chancellor’s announcement that government will offer grants for hospitality businesses struggling under tier 2 restrictions is very welcome.
“But the fact that small breweries are not automatically eligible is a hammer blow. Small breweries are part of the fabric of hospitality and government should make all breweries automatically eligible for the £2,100 grants and JSS support as the rest of hospitality. Breweries who employ skilled people should not be left at the mercy of discretionary grants, which many didn’t get last time around.
“With breweries currently closing at an alarming rate across the UK, time is running out for government to step in and save the British pint, before it’s too late.”
UKHospitality chief executive, Kate Nicholls, said: “This is a hugely generous package of support and very welcome news, just when we needed it. The changes to the Job Support Scheme will help to safeguard hundreds of thousands of jobs, and the grant support will provide a crucial lifeline for businesses struggling with low footfall and ongoing costs. It is excellent that the grant has been backdated to the date when the restrictions began to bite.
‘A hugely valuable lifeline for businesses’
“This gives businesses a much-enhanced chances of being able to overcome the challenges and survive into 2021, to sustain businesses so they can begin to recover next year and play a vital role in helping boost the economy. It is encouraging to see the Government listening to and understanding the plight of hospitality, which is dire. We are pleased to see that the measures extend to hotels and B&Bs, too.
“It is important now that grants are processed as quickly as possible as businesses are on the brink after weeks of curfew and severe restrictions. There is still a long way to go, and we will be in close contact with the government to make sure that our members, and the whole of hospitality, gets the support it needs and deserves. This is a significant step forward for us, though, and a hugely valuable lifeline for businesses to stay afloat and keep as many staff as possible in their jobs.”
The British Beer & Pub Association also welcomed the enhanced support package. Chief executive, Emma McClarkin, said: “Having called for more support for businesses in our sector struggling under tier two restrictions, we warmly welcome these measures from the chancellor today. They will help thousands of pubs and support thousands of jobs that otherwise were at real risk of being lost for good.”
However, she added: “Our brewers are forecasting sales through pubs to be 50% down this year. Make no mistake, more will need to be done to support Britain’s brewers and those in the pub supply chain who currently do not benefit from grants, as well as regular reviewal of the restrictions — including the 10pm curfew — to stimulate public confidence and increase trade. This will require further stimulus measures, including [reviewing] business rates, VAT, and beer duty cuts in 2021 and beyond.”
CAMA chief executive, Tom Stainer, said: “Pubs in areas under tier 2 restrictions felt like they had the worst of all worlds, with additional restrictions reducing trade further, but without receiving additional support, so these new financial support packages, which CAMRA had called for, will be warmly welcomed by the beer and pubs sector.
“New funds for councils to issue grants for pubs and hospitality businesses, together with reducing the contributions businesses have to pay towards staff wages, will give pubs in areas with high and very high restrictions a much better chance of surviving.
“We hope that the government will now encourage all local councils to use the 5% of additional discretionary funding available to make sure that breweries and cider makers receive grants and the financial support they need to cope with reduced trade.
The extension to the Scottish central belt lockdown has been slammed by Willie Macleod, UKHospitality’s executive director for Scotland.
He said: “The support on offer isn’t going to be enough to save the sector. The £40m announced by the Scottish government was intended to cover a 16-day period to 25th October. That sum was inadequate when it was announced, and it is only going to be diluted further.
“Businesses are going to go under and take valuable jobs with them. It is now vital that the Scottish Government outlines plans for additional support to keep the sector from being totally wiped out.”
