Hospitality sector faces 'existential threat' as Government called on for more support

The trade association says that the industry faces an ‘existential threat’ and that the package of measures announced in last week’s budget don’t go far to support the vast majority of hospitality businesses that ‘are in the eye of the storm’.

“The hospitality sector is facing a unique short-term cashflow catastrophe as customers are advised to stay away,” says UKHospitality CEO Kate Nicholls. “Government must support businesses of all sizes through this period so we can bounce back and continue to be at the heart of our communities.”

UKHospitality is asking the Government to immediately suspend business rates payments for all hospitality businesses for this year and extend Statutory Sick Pay coverage to hospitality businesses of all size. It also says that industry suppliers, including landlords, should be discouraged from pursuing businesses for arrears.

“Business rates must be suspended immediately. Cash in the bank to continue to pay staff is the absolute priority for businesses,” says Nicholls. “We also need extraordinary measures from Government to support our colleagues. There is likely to be a short-term fall in demand. Government should step in and cover wage costs so our staff can continue to look after themselves and so businesses will still be there to provide them with employment when the country gets back on its feet.”

Nicholls also says that she would like to see the UK Government take similar actions that in Denmark, where the Danish Government has announced it will pay 75% of the pay for employees threatened by layoffs (up to £25,000 per year), with employers paying the rest, and employees taking a week’s unpaid holiday. Posting on social media, she tweeted: “Our priority has to be about keeping people in employment during a cash flow crisis. Any ask of help from Government is all about us getting breathing space to focus on our teams.”