Opinion: ‘Getting Peterborough back to business’

Some tabloids have predicted that we will be able to open restaurants and pubs at some point in April; I understand the euphoria this thought may bring.

There is something deeply rooted in the English psyche about a warm Spring day and sitting in the beer garden: to bathe in the warm sunlight underneath clear blue skies is a defiant riposte to a harsh winter.

However, when the country starts to open up, it will be necessary to think about the economy and how we restore it. Labour is the party of work and business: as has been said, the clue is in the name. As vaccines get distributed and the coronavirus loosens its grip, we need to focus on revitalising commerce in our city.

Just as releasing the country from lockdown won’t be a one-off affair, the government should be laying out a pathway for business and provide assistance every step of the way.

It’s unreasonable to expect businesses which have been damaged by lockdown to suddenly be able to spring to life; they cannot bear the costs of “normal” taxation. Thus, Labour proposes that there should be a targeted business rates holiday and an extension in reduced rates of VAT.

Certain sectors need extra help. In particular the retail, hospitality and leisure industries have been badly hit; targeting should focus on them. After all, they rely on social congregation, whether standing in a queue at a store or going to see the latest film at a cinema.

It was right to close them down when the pandemic was in full force; as we escape it, they are likely to be the last to open as they are the “riskiest” sectors. Yet, we need to shop, to be entertained, to get help to go on holiday: it’s necessary to take strong measures to preserve them now.

Furthermore, they will need extra time to adjust. For example, holiday companies will likely have to change their offering to provide more domestic vacations given the international coronavirus situation.

These businesses need support more than ever and they should get a further 6 months of 100% business rates relief.

Furthermore, hospitality, tourism and culture sectors should benefit from a continued 5% reduction in the rate of VAT until October 1st or three months after restrictions have been lifted, whichever is later.

Unfortunately, it’s not altogether clear that the Chancellor and the Government understand the real problem: I fear that once the mission of delivering the vaccine is accomplished, there may be a premature move back to a normal that no longer exists.

I understand the temptation; rather like being able to sit in a garden in the warm spring sunshine, there may be a moment when one is dazzled by warmth and light and think that all is well with the world.

But this isn’t a reflection of reality; the truth is that even as we break down the coronavirus, we have an 
economic problem which will prove perhaps even trickier and more vexing to address.

Furthermore, this government has a bad habit of allowing economic policy trail behind measures to address public health: there is an impression of hasty patchwork, never quite complete, and the Chancellor running around trying to fill in gaps with ill-considered policies. It’s time for thoughtful government and careful planning.

We need it to restore our country to full health in every respect.

We need to help Peterborough get back to business.