Credit, Collections & Insolvency News
The trade body UKHospitality has warned that the newly announced four-week delay to restrictions being lifted could cost its sector as much as £3 billion in lost sales and will have a knock-on effect on bookings throughout the summer and into the autumn.
Operators of bars, restaurants and nightclubs have been put under huge financial pressures since the pandemic began with their ability to trade having been restricted since the first half of 2020.
Many businesses across the UK have already been forced to close permanently but there are concerns that some of those still afloat could be further damaged financially by the government’s decision to push back the planned lifting of restrictions for an extra four weeks.
As far as UKHospitality is concerned, the key issue now is ensuring that those businesses with major cashflow problems are supported by the government so they can survive into July and beyond.
UKHospitality’s Chief Executive Kate Nicholls said “Our businesses face incredible levels of debt and will now face a huge cost hike, with business rates payments set to recommence and rent accruals due at the end of the month.”
“Simply put, if the supports provided by the chancellor are not sustained and adjusted, businesses will fail and getting this far will count for nought.”
Meanwhile, the Night Time Industries Association (NTIA) has described the decision to postpone the further unlocking of the economy in England until the second half of July as being a ‘devastating blow’ for its industry, which it says has been “hardest hit by this pandemic”.
Michael Kill, the NTIA’s Chief Executive said “In a very real sense, the prime minister has ‘switched the lights off’ for an entire sector,” “Many businesses have not survived this pandemic and others are on a financial cliff-edge, unable to operate viably.”
“Distressed industries cannot continue to be held in limbo, with thousands of businesses left to fall.”