- WITH THE NEXT RENT QUARTER DUE AT THE END OF JUNE, MANY BUSINESSES ARE FACED WITH FURTHER ACTION FROM LANDLORDS WITHOUT GOVERNMENT INTERVENTION, EVEN WITH THE INTRODUCTION OF INTERMEDIATE MEASURES CHANGING CORPORATE GOVERNANCE AND THE INSOLVENCY BILL IN PARLIAMENT IN THE LAST FEW DAYS.
- IF THE GOVERNMENT DOES NOT TAKE ACTION IN THE COMING WEEKS, OVER 50% OF NIGHT TIME ECONOMY BUSINESSES ARE AT RISK AND MILLIONS OF WORKERS FACE LOSING THEIR JOBS.
- HUNDREDS OF LANDLORDS AND TENANTS HAVE SUPPORTED THE #THEBIGFREEZE CAMPAIGN REPRESENTING THOUSANDS OF BUSINESSES AND STAFF ACROSS THE COUNTRY – IT’S IMPORTANT THE GOVERNMENT LISTENS TO THE SECTOR AND UNDERSTANDS THE IMPACT OF ITS ACTIONS OVER THE NEXT PHASE OF THIS CRISIS.
It is not enough! We are moving into uncertain times, planning is key, but the government has not given enough information to the businesses to be able to plan effectively. Indecision from the Government on the subject is leaving many operators across the sector frustrated and isolated with limited options given these extreme circumstances.
Rent accounts for 8-10% of revenue for most businesses within our sector and given that the Night Time Economy generates 66 Billion in revenue and the wider Hospitality sector generating 130 Billion. The Government CBILS has had 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.
If the Government does not consider immediate action to support both businesses and landlords during this difficult time we will be faced with a catastrophic financial collapse across both sectors, as operators release buildings back to landlords, landlords will be left with a financial void, as well as empty properties without tenants for many months.
The NTIA has also asked the Government to consider the following provisions under a sector-specific scheme which would allow the most affected businesses to be supported following the release of lockdown until the end of 2020.
• Government/Landlords and Tenants must share the Financial Burden
• Increased Rateable Value threshold for Grants Scheme to 150K
• Sector-Specific Extension to Grant Scheme.
• Sector-Specific Extension to Furlough Scheme & SEIS (End of 2020)
• Clarity on Lockdown release Timeline and Public Safety Measures for the Sector.
• Reverse the Narrative – We are Safe and Open for Business!
When the lockdown is lifted many businesses feel they will only return at 40-43% of capacity for the first three months, with 64% of businesses not being financially viable. With an estimated start-up cost of over 31K for the initial period, and an estimated 55% of staff returning to their roles across the sector.
Social Distancing is the sector’s biggest concern, while many operators have been working tirelessly to find a solution, many businesses across the sector feel this is not an option, and that there are some other considerable hurdles in terms of staff and customer safety, PPE and the narrative presented by the government within the initial weeks of the crisis suggesting people don’t go to pubs, clubs or theatres…