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Support ‘insufficient’ to save many Bristol firms facing third lockdown
The financial support currently available won’t be enough to save firms facing the impact of a third lockdown, warn business and union leaders.
Chancellor Rishi Sunak has announced a £4.6billion package for the retail, hospitality and leisure sectors, as well as an additional £549m discretionary fund for other companies impacted by the latest restrictions and an extension of the furlough scheme.
But industry representatives argue this is not enough to enable many affected businesses to weather the storm of yet another lockdown and they are demanding the government provides a clear long-term plan and sustained support.
Mayor Marvin Rees is asking for assurance from the government that lockdown restrictions will be fully funded for businesses and self-employed people unable to work, warning the current funding available is insufficient to meet the level of need in the city.
“We need to ensure people are fully supported with the right financial packages so are once again calling for more clear and urgent action to save local businesses, and ensure no one falls through the gaps in financial support,” said Rees.
A number of smaller firms and self-employed workers won’t be eligible for the grants currently available, with the mayor estimating an additional £1m per month is needed to support hundreds of traders through the next few weeks.
Nigel Costley, the regional secretary of Trades Union Congress (TUC) South West says ministers need to act quickly to provide targeted support for hard hit industries in the city, such as retails, arts and aviation.
“The government’s financial support package isn’t good enough to cope with this renewed public health emergency,” says Costley.
“Without greater support, even more Bristol jobs will be lost as businesses go under. 2020 was a tough year for so many but yesterday’s announcement shows we’re not out of the woods yet.”
The TUC is also calling for sick pay to be boosted to a real Living Wage so that people can afford to self-isolate if they have to, with Costley warning a failure to do so means the government “is forcing hard working people to choose between lives and livelihoods”.
Announcing the latest support measures on Tuesday, the chancellor said the injection of cash is designed to help businesses to get through the months ahead and sustain jobs, so workers can be ready to return when they are able to reopen.
James Durie, the chief executive of Bristol Chamber & Initiative at Business West, warns that while the financial support is welcome, it is not enough to save many firms.
“We need to see a more comprehensive support package for the whole of 2021, not just another incremental intervention,” said Durie.
“The government must move away from this drip-feed approach and set out a long-term plan that allows all businesses of all shapes and sizes to plan and, ultimately, survive.”
He added: “Support must be sufficient to cover not just those on the front line of retail, hospitality and leisure, but also firms in supply chains and wider business communities who are also feeling the devastating impacts of these restrictions.”
Durie highlighted concerns about the companies excluded from support packages, adding: “These businesses must not be allowed to fail now when the vaccine rollout provides light at the end of this long tunnel.
“The financial support for businesses needs to be stepped up in line with the devastating restrictions being placed on them. Otherwise, many of these firms may simply not be there to power our recovery when we emerge once again.
“Enhanced support for businesses, a turbo-charged vaccine rollout, and delivery of existing promises on mass testing must be delivered to enable the UK to restart, rebuild and renew. We await to hear the statement and the support being announced from the chancellor later today.”
Main photo by Lowie Trevena
Read more: England placed back under lockdown
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