Tier 3 announcement a major blow for Bristol businesses

Business representatives have expressed bitter disappointment Bristol is to be placed in Tier 3 amid warnings the rules will have a “chilling impact” on the region’s economy.

They are calling on the government to provide greater certainty and financial support for retail, hospitality and leisure sectors, which are set to be further hit as the city goes under the toughest coronavirus restrictions at what would normally be one of the busiest times of the year.

Bristol Hoteliers Association (BHA) has said it is bitterly disappointed by the announcement, meaning the majority of hotels won’t be able to reopen on December 2, and has joined calls for more support.

It comes as UKHospitality warns the new Tier 3 system will result in 94 per cent of hospitality businesses becoming unviable by March 2021. In Tier 2, the organisation predicts it will be 75 per cent and even at Tier 1, it estimates 25 per cent could be unviable.

Commenting after Thursday’s announcement by the prime minister, Business West managing director Phil Smith expressed disappointment.

“Grant support via the business rates system continues to be available for premises required to remain closed in Tier 3 areas, but that is small comfort compared to the lost earnings for those businesses,” said Smith.

“The full detail for other support is not clear, but many supply chain businesses and those mandated to close look like not being eligible for any further grants that have not yet been announced.

“The restrictions will have a chilling impact on the region’s economy and its ability to recover into the new year – and is very disappointing news for the many businesses for who the run-up to Christmas is a vital time for earnings.

“The outlook for our hospitality and leisure sectors in the Bristol area is a very significant worry for political and business leaders across the region. We urge everyone to redouble their efforts to comply with social distancing, to allow us to get the virus under control and start to ease restrictions before Christmas and into the new year.”

The Bristol City Centre Business Improvement District (BID) is backing the national Bounce Back Better campaign and manifesto, which outlines a range of packages to provide a vital lifeline for hospitality, retail and leisure businesses.

Keith Rundle, operations director at Bristol City Centre BID said: “Hospitality and leisure businesses employ thousands of people in Bristol and are a keystone of the local economy. They are more in need of support now than at any previous time during 2020.

“We agree that sector-specific measures require sector-specific support, which is why we are backing this campaign for a range of measures to give greater certainty and financial support to our passionate, dedicated and vital retail, hospitality and leisure businesses.”

The Bounce back manifesto asks for:

• A one-off grant of up to £15,000 for retail, leisure and hospitality businesses.
• Pause National Insurance employer contributions for furloughed employees until March 31 2021.
• Extension of 100 per cent business rats holiday for 2021/22.
• Extension of the VAR reduction scheme.

Commenting on what the restrictions mean for hotels in Bristol, Raphael Herzog, chair of the BHA, said: “Many Bristol hotels have been operating at a loss since April. Many of us have invested thousands of pounds in making our premises safe for staff and guests, yet we were one of the first sectors to be shut down. Due to all the investment and safe practices we have introduced, it is safer to visit a hotel than go to a large grocery store.

“We had been hoping we would be able to open again in December and start on the road to recovery. Now, we’re not likely to be able to begin that process until 2021, so we would urge the government to help kick-start this 2021 recovery by giving us some extra support.”

Herzog added: “I would call on everyone in the UK to seriously considering taking their next holidays or short breaks in this country, to go to their local hotels, restaurants and pubs. We need support from the public to help us recover from this crisis as soon as possible.”

Main photo courtesy of Bristol City Centre BID

Read more: Bristol has ‘enhanced plan’ to deal with Tier 3 challenges