Keep Supporting #THEBIGFREEZE

By May 5, 2020BLOG

OVER 50% OF NIGHT TIME ECONOMY BUSINESSES ARE AT RISK AND MILLIONS OF WORKERS FACE LOSING THEIR JOBS IF THE GOVERNMENT DOES NOT EXTEND FINANCIAL SUPPORT FOR THE SECTOR!

With unprecedented times comes a series of unprecedented measures by Government, we have witnessed grants, loans schemes and the announcement of a furlough scheme covering 80% of salaries across the sector.

It is not enough! We are moving into the uncertain times, planning is key, but the government has not given the businesses enough information to be able to plan effectively.

The current provision for Furlough takes businesses through until the end of June, but we are being asked by banks to forecast beyond this to obtain CBILS loans? The provisions were a short term measure to give financial fluidity across the most affected business sectors, allowing us to get through a crisis period.

Rent accounts for 8-10% of revenue for most businesses within our sector, given that we have invested millions into CBILS with limited take-up, with banks traditionally not comfortable lending to the hospitality sector, we need the Government to adopt the #TheBigFreeze – a transactional freeze on rents, mortgages & loans to make sure the businesses have every opportunity to get through this crisis. This is an all-encompassing solution that accommodates for everyone within the chain!

HUNDREDS OF LANDLORDS AND TENANTS HAVE SUPPORTED THE CAMPAIGN REPRESENTING THOUSANDS OF BUSINESSES AND STAFF ACROSS THE COUNTRY – PLEASE HELP DRIVE OUR AGENDA!

Special Provisions for the Hospitality Sector:

  • #TheBigFreeze – The Big Freeze is a portfolio of proposed measures to consider during the COVID – 19 periods, in addition to the current measures that exist within the UK. We are proposing that all financial commitments to banks in terms of mortgages, loans and financial agreements be frozen, without effect on any current covenants or balances in terms of interest. Commitments will be reinstated once the crisis period ends.
  • Increase the Rateable Value threshold for Grants Scheme to 150K – Extend the rateable value threshold from 51K to 150K saving thousands of business and jobs.
  • Sector Specific Grant Scheme – allowing Night Time Economy  businesses to top up cashflow through an extended period of lockdown
  • Sector Specific Extension to the Furlough Scheme allowing businesses an extended period of support which will overlap the lockdown release period. This will allow businesses the opportunity to take staff off furlough gradually based on business needs following crisis period.
  • Give clear instructions on the timeline for when we open, to ensure we have adequate time to re-engage suppliers and implement training requirements for safe working practice to each business type across the sector.
  • Reduction in VAT to 10% for 12 MonthsAllowing Night Time Economy & Events Sector businesses to maximise cashflow during the bounce-back period.
  • Reverse the Narrative – Make sure the Public are aware that it is Safe to go out!

Please sign our open letter to government:

ENDORSE OUR OPEN LETTER

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