Bosses in Peterborough hit out at Chancellor’s new economic rescue plan

Bosses say that billions of pounds worth of new funding pledges to save jobs and businesses will not be enough to bolster the struggling hospitality and events industries.

Scrapping plans for an Autumn budget last week to focus on supporting businesses through a second Covid spike, Mr Sunak unveiled a new package of aid to protect jobs and the economy.

The key measure was a Jobs Support Scheme with the Government pledging to pay a third of wages of only ‘viable jobs over six months.

It is intended to replace the furlough scheme, which finishes at the end of next month and is credited with protecting about 26,300 jobs in Peterborough.

He also announced help for the self-employed as well as help with cashflow for businesses by changing the terms on Bounce Back Loans and Coronavirus Business Interruption Loans, as well as more time and flexibility on deferred tax bills.

The Chancellor also extended the reduction in VAT for hospitality and tourism businesses to five per cent until March 2021.

But Adrian Posnett, managing director of brewery Oakham Ales, in Maxwell Road, which recently announced 16 redundancies and that during lockdown had to throw away thousands of litres of ale, said: “The Job Support Scheme really looks to be a case of much too little, rather too late.

He said: “The Government’s furlough arrangements were an immense help earlier in the year, but the new scheme provides very little reassurance for us at a time when the brewing industry is facing up to the prospect of pub sales falling back again markedly over the coming months.

“The continuation of the emergency cut in VAT rates for the hospitality industry isn’t likely to be of great direct benefit to Oakham Ales although it might help a section of our customer base maintain current sales levels.

Mr Posnett added: “What we had hoped for was more direct help for the brewing industry to include an extension of the cut in VAT rates to cover alcohol sales and a commitment from the Chancellor to cut the punitive levels of Beer Duty that we continue to pay.”

He said: “Extending the payment period for deferred VAT bills will certainly help in getting our cashflow back on track after the huge financial shock that resulted from the lockdown pub closures.

“The extension of “Bounce Back” Loan and Coronavirus Business Interruption Loan terms from 6 years to 10 years might also be a helpful measure for us although of course taking on any additional debt at a time when our industry is in such a precarious position is not a decision any brewer would take lightly.”

The Covid lockdown and the banning of mass attendance festivals, shows and sports competitions events has dealt a heavy blow to the events industry.

Peterborough-based events hire business Pearce Hire has been desperately lobbying national and local government for more support for the sector as the company’s diary emptied and it was forced to make a number of redundancies.

Jim Brown, general manager, said: “We have received no rates relief, no grants from the Government and the VAT announcement is irrelevant to us.

“We have no confidence that any of the £1.57 billion targeted at culture and heritage will make its way to us.

“To sum up we feel abandoned by the Government.”

Mr Brown said that while the plan for wage support was welcome it was too late to help more than 40 per cent of Pearce Hire’s staff who have already been made redundant.

He said: “We are bitterly disappointed that there are no sector specific measures for the events industry.

“The Government has made it impossible for us to trade since March but have offered no help, bar furlough, to see us to the other side.

“They have received countless representations and copious amounts of data from the events industry so they can’t be ignorant to our fate. It is staggering to us that a £100 billion industry is being ignored.”

Mike Cherry, chairman of the Federation of Small Businesses, said: “The Chancellor’s statement is a very welcome and significant step forward, but there must be more to come.”

John Bridge, chief executive of Cambridgeshire Chamber of Commerce, said: “This new raft of measures serves to help save as many jobs as possible where business demand has decreased due to the crisis, and recognises that cashflow still remains a major issue for firms.

“There are also still sectors that are still some way off being able to return, particularly those in business events and conferences and, just as he did at the start of the crisis, we’d urge the Chancellor to look at developing the support for business over the coming weeks and months.”

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