Preston BID joins nationwide call for urgent government support for the high street

Preston BID has joined forces with over 100 destinations across the UK in seeking urgent government support for 100,000 retail, hospitality and leisure businesses, amid rising cases of coronavirus.

In a co-signed letter sent today, December 20, to the Primer Minister, Boris Johnson, and the Chancellor of the Exchequer, Rishi Sunak, the collective are urging the government to provide a #BusinessBooster and critical assurances that financial support will be provided to these sectors, in order to "prevent a catastrophic chain reaction to the future of our economy."

The letter, which was also sent by Preston BID to the Preston MP, Mark Hendrick, was sent on behalf of the largest networks of businesses across the UK, Business improvement Districts, alongside their partners, including UKHospitality, British Beer and Pub Association, and Night Time Industries Association.

It states: "It is imperative that the Government acts quickly by offering financial assistance and other necessary interventions to those experiencing disruption following rising cases of the Omicron variant and the impact of “Plan B” measures. With consumer confidence expected to drop below its current level of -15 amid growing speculation of an impending lockdown, the time for action is now.

"There is clearly growing concern of a lockdown following the announcement of Plan B restrictions on 8th December 2021 which must be reviewed on 29th December 2021, two days prior to New Year’s Eve. Businesses need certainty with many holding on to the glimmer of hope that New Year may bring.

"The critical Christmas trading period is in tatters leaving businesses, particularly those within the hospitality, retail and leisure sector teetering on the brink of financial ruin and set to lose £4bn in sales.

"While we appreciate risks to health due to the Omicron variant, we cannot and should not forget the businesses who have had all but been shut down and want to continue trading safely."

The letter, which is backed by Mark Whittle, Director of Membership Services & Preston City Centre BID Manager, points out that hospitality is the UK’s third largest sector, employing 10% of the UK workforce and producing £130 billion of economic activity, meaning these sectors are vital to the country's economic recovery.

The collective say that the current measures in place are not enough, for instance although the government offers a Business Rate relief of 25%, they believe that full rent payments matched with mass cancellations, in what has been dubbed by the sector as a “stealth lockdown”, has had a more detrimental impact than previous tiered restrictions, so more support is needed.

They add that the current package was designed for an open economy, post Covid, but the impact of the rise of the Omicron variant and increased restrictions require a response from Government that mirrors lockdown support, so instead they are calling for 100% Business Rate relief for the first three months of 2022, followed by a 50% Business Rate relief from April 1 through to June 30.

They also ask that the government reduced rate of VAT at 12.5% should be extended through to the March 31 2023 to allow the hospitality, retail and leisure sector to achieve cost savings wherever possible, and ensure the increased cost is not passed onto the consumer as the economy begins to recover again in Spring.

In addition, the group say that the £250 million unspent in grants with local authorities, has led to varying levels of funding and grant residue remaining in different areas, which places disproportionate pressure on businesses simply because of their location, and means many will not receive a penny.

Instead they are calling on the government to introduce grants up to £15,000 by rateable value to businesses within the hospitality, retail and leisure sector to enable them to survive in light of a difficult financial period this Christmas.

Finally, they propose the introduction of a Discretionary Grant Fund of up to £7,500 per claim that will ensure that the freelance and selfemployed community is appropriately supported, adding that whilst they upend these sectors, they have been largely overlooked during the pandemic.

The letter ends: "We would urge you, your Government, MPs from all sides of the aisle to consider carefully the impact and potential loss to the economy if no action is taken to prevent the crisis we now all face economically.

"We understand that business groups are being invited to share insights to Government, and proposed this is extended to the Business Improvement District industry. This will provide you with the opportunity to learn of the challenges town and city centres are currently facing, and work collaboratively together on suitable solutions during this challenging time.

"In doing so, we hope this will provide greater clarity and the need to consider how the Government might support these sectors further.

"We appreciate the pressures facing Government economically but failing to act will not only see thousands of businesses go to the wall but the real prospect that billions of previously allocated Government funds going to waste simply because we did not act to save our economy."

You can read the full letter here.