Unlike government support in the earlier phases of COVID-19 we aren’t seeing the much-needed reduction in VAT (which should go back down to 5%) or furlough support for businesses and employees and grants for the self-employed. Without these measures, which proved effective last time, the sector will struggle.
“It could be that yesterday’s initiative is only the first part of a new wave of support by the government. This will be what the sector is hoping for. Alternatively, yesterday’s measures might just be there to balance out the ‘bad news’ as more restrictions are introduced, with no intention of building on them in the coming months.
“If there are more measures on the way the Chancellor needs to hurry up. In the next couple of weeks and in 2022 cash flow will be a major concern as many venues are now seeing a more than 50% cancellation in their bookings. This could prove a devastating and costly blow for businesses in terms of employee wage commitment in addition to wasted food stocks.”
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