News / Hospitality
‘Urgent intervention’ needed to prevent collapse of hospitality industry
Hundreds of jobs could be at risk if the Government doesn’t increase the support available for the hospitality, retail and leisure sectors, warn industry insiders.
Bristol City Centre Business Improvement District (BID) says the current furlough scheme is concealing the true picture of unemployment in the city, with many facing the prospect of having no company to return to.
The organisation, along with the Bristol Association of Restaurants, Bars and Independent Establishments (BARBIE), is backing a nationwide campaign calling on the Government to raise the threshold for its retail, hospitality and leisure grant, arguing this could make the difference between survival and bankruptcy for thousands of high street businesses.
Currently, pubs, bars, restaurants and cafés are only eligible for the £25,000 grant if the premises they operate from has a rateable value of less than £51,000. This has meant many businesses based in larger buildings have been cut off from the financial support offered to smaller outlets.
At least 60 Bristol businesses have been identified as at risk because they have not been eligible for government grants. Of these, 14 are in particular danger of closure, putting 200 jobs at risk.
Brendan Murphy, the co-founder of BARBIE, says: “There are so many businesses that have been left out of government grants, some because they are over the £51,000 rateable value cap and others that don’t fit the eligibility criteria, which seems to be different depending on which council you are with.
“We are currently dealing with 14 of such cases that between them employ over 200 staff. Urgent intervention and support are required to stop the industry collapsing and that support is required now, not in three months’ time.”
No 1 Harbourside on Canon’s Road and the Milk Thistle on Colston Avenue are just two of those affected in Bristol. Both are backing the nationwide #RaiseTheBar campaign, set up by Croydon BID.
Amy Devenish argues a sliding scale of grants would be a fairer solution – photo courtesy of Bristol BID
Amy Devenish, owner of The Gloucester Old Spot on Kellaway Avenue, believes a sliding scale of grants would have been a much fairer solution.
She says: “Simply because a business has a rateable value set at a certain level by the council, it should not immediately assume that the business is any better able to survive a crisis like this.”
The BID and #RaiseTheBar partners say adjustments to the furlough scheme have also created an “unlevel playing field of support”, meaning businesses are missing out on vital funds to stay afloat whilst their employees are able to remain financially supported.
The situation is likely to reach tipping point this month, with the next quarterly rent due on Wednesday, June 24, putting businesses at risk of closure, with overheads and the cost of reopening depleting cash reserves.
Keith Rundle says the furlough ‘lifeline’ will be wasted if people don’t have a job to return to – photo courtesy of Bristol BID
Keith Rundle, operations director at Bristol City Centre BID, says: “The furlough scheme has been a lifeline for thousands of Bristol employees as we continue to battle all that the covid pandemic throws at us.
“But it will all be wasted if, as the scheme is wound up, staff find themselves with no employer or business to return to. With rents due and costs of putting in protection measures prior to safely re-opening, businesses need access to financial support now more than ever – to ensure they can get back up and running, keep people in jobs and help get the economy moving again.”
Kwan Voong says urgent support is needed to support the hospitality sector
Kwan Voong, the owner of Toro Noodle Bar on Park Street, adds: “There are a huge number of Bristol businesses over the £51,000 RV cap in Bristol and we need urgent support as has been provided by councils such as Camden, Hackney and Lambeth who are using their additional discretionary grants to support the hospitality sector.”
Main photo courtesy of Bristol BID
Read more: How can cafes, pubs, bars and restaurants safely reopen?
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