UKHospitality Scotland says Holyrood must urgently consider further financial support for hospitality businesses still facing crippling restrictions if the Scottish government doesn’t stick to the time-frame in its strategic framework and move to level zero by June 28th. The call follows UK prime minister Boris Johnson delaying England’s lockdown ‘freedom day’ by four weeks, from June 21st to July 19th.
Said UKHospitality Scotland executive director Leon Thompson (pictured), “It is vital the Scottish government understands how important it is to achieve level zero by the date of 28 June. Progress to remove restrictions will help hospitality businesses continue to move to improved trading and back towards viability. Hospitality businesses may look busy but most continue to trade at a loss adding to the debt burden built up over 15 months of closure and restricted opening.”
UKHospitality Scotland is also calling for an announcement on the details on what life will look like after level zero, as well as the review of physical distancing that had been promised last week.
Thompson said. “Level zero is not the end and there will still be significant restrictions on hospitality. Without details of what happens after level zero and the physical distancing review, businesses cannot begin to plan for the future. Ultimately, hospitality needs the removal of all restrictions as quickly as possible. In the absence of this, the Scottish government must urgently consider what financial support it will provide to support hospitality businesses.”
UKHospitality Scotland has demanded more meaningful levels of financial support for hospitality businesses by the Scottish government amid a delay in lifting restrictions further for much of the country while Scottish Hospitality Group spokesman Stephen Montgomery says that despite Glasgow’s move to level 2, nightclubs and music venues are still being left out in the cold financially.
First minister Nicola Surgeon announced yesterday that Glasgow will move to level 2 from level 3 this weekend while the majority of the islands will move from level 1 to level 0. But many parts of Scotland will not proceed to the next step of the country’s roadmap out of lockdown and remain at level 2.
UKHospitality Scotland executive director Leon Thompson (pictured) said, “The delay in moving 14 of Scotland’s 32 local authorities to level 1 from level 2 now begs the question of when they might be able to move – an answer is important if businesses are to best plan for survival. The hospitality sector remains fragile after more than 15 months of closure and severely disrupted trading.
“While the announcement provides progress for some, businesses need to hear the Scottish government will provide meaningful levels of financial support to help them continue to trade and safeguard the jobs of their employees.”
Scottish Hospitality Group spokesman Stephen Montgomery added, “It’s good news that businesses in Glasgow are being released from level 3. And wedding venues moving to level 1 will be able to host 100 guests. But it’s devastating news for the brides and grooms across the central belt who were counting on a change, and all the venues that will end up refunding thousands of pounds. None of this helps nightclubs and many music venues either, so we can’t forget that there are many in the sector still under extreme pressure
“The further reduction in hospitalised Covid admissions shows that the vaccination effort is working, so surely case numbers don’t matter if those people who do test positive remain fit and healthy. We don’t place restrictions on entire cities when it’s winter flu season, so why on earth are we doing it now? And how can businesses trust what the government is saying about the future when the objectives keep changing.
“We invite the First Minister and her cabinet colleagues to visit our premises and learn for themselves how damaging and distressing their approach is. She acknowledged today in the chamber that all their decisions have not been perfect. We can confirm from bitter experience how right she is. But it’s never too late to listen, learn and change.”
The Scottish Hospitality Group (SHG) has slammed the Scottish government’s new financial support package for business that was announced on Friday as being woefully inadequate because it won’t see the trade through if further restrictions are imposed, while labelling the new five-tier system ‘unnecessarily complex.’
SHG spokesman Stephen Montgomery said, “The new financial support package, while welcome, is the equivalent of being abandoned at sea with only a lifejacket. We cannot survive if the intention is to impose these restrictions indefinitely. More levels are just another example of an unnecessarily complex system that leaves both businesses and the public confused.”
Coming into force on Monday 2nd November, under the five tiers hospitality venues would be forced to close at level three while they would be banned from serving customers indoors or have severely restricted opening hours at level two.
Stephen has also repeatedly called for the government to work together with trade to find a solution based on ‘tangible evidence’ rather than ‘absurd guesswork.’
He said, “The hospitality industry is still left bearing the brunt with no scientific, statistical, or medical evidence for these restrictions. We are tired of hearing the numbers ‘may’ or ‘might’ or ‘could’ be impacted by our ongoing economic ‘sacrifices’. It seems ludicrous it is too early to see the effect on case numbers for hospitality yet current measures on household gatherings are determined as having an impact.
“Between July and September our members have served more than 1.8 million customers with only 17 confirmed cases, demonstrating Scotland’s bars and restaurants offer a far safer environment where people can be sure all possible precautions have been taken to look after them properly. We have repeatedly called on the government to work with us on a solution – we now need confidence that ministers are making decisions and putting measures in place based on tangible evidence rather than absurd guesswork.”
Last week Lloyds Banking Group which includes Bank of Scotland said it would be waiving £2bn worth of arrangement fees to support small businesses with up to £25m turnover in size and said it would ensure that they have access to additional finance to overcome any impact COVID-19 causes to their cashflow.
The group said, “Lloyds Banking Group wants to reassure its customers that it continues to stand by their side and will provide them with additional financial support as required. It is anticipated that a sustained and wide-scale outbreak in the UK will impact businesses and in particular their cashflows, as interruptions to their supply chain or significant employee absence will severely impact their ability to generate sales and result in reduced revenues.”
In certain circumstances, repayment holidays to be provided, to those businesses impacted the most. All customers with a dedicated Relationship Manager will be contacted to discuss their financial needs.
David Oldfield, Group Director, Commercial Banking, Lloyds Banking Group said, “We fully understand how worrying these times are for business owners, concerned not only about their and their own family’s health and wellbeing, but also of their employees. They are also worried what the outbreak might mean for their business and with no knowledge of how or when they might be affected.
As our customers face into such uncertainty, we want to provide reassurance to them that, if needed, we are here to help with additional working capital to get them through temporary interruptions to their business and to their cashflow.”