UK Hospitality & Events Industries may lose 1Mil Jobs

During these difficult and uncertain times, there are going to be a lot of consequences to all industries. But particularly the hospitality and events industries. 

The Hospitality and Events industries demand that the Prime Minister acts now.

The PM must take the opportunity to show leadership by giving medium-term funding for the Night-Time Economy and events industry. The government must show the country that it truly cares about our business and staff.

Today a media statement from Night Time Industries Association, Association of Independent Festivals and industry operators has gone out:

“Last night’s devastating news from the UK government relating to the Hospitality and Events industries has left many businesses, staff and supply chain in the depths of uncertainty with no clear support mechanism available.

The PM has unbelievably advised people to avoid social gatherings, without an official notice of closure or adequate financial support for businesses or staff.

Thousands of businesses will close their doors and hundreds of thousands of jobs will be lost across many sectors, leaving many in financial difficulty

The UK government needs to follow the lead of France who has said it will not allow any business to fail and offered €300 Billion, alongside Germany and some of our European and Scandinavian counterparts, showing uncompromising strength in supporting business and employees through this difficult period.

In Spain, the Government has announced that COVID-19 constitutes ‘force majeure’ which permits employers to suspend employment under Spanish law.

During the period of suspension of employment, our Spanish colleagues receive 70% of their salary from the government (up to a maximum annual salary of €40k).

Similarly in Belgium, the government is picking up unemployment costs during the period of temporary suspension.

In Denmark, the Government is funding 75% of employment costs with the employer funding 25% and the colleague required to contribute 5 days of unpaid leave.

In France, the government has announced that employers can file an application for partial activity which would enable the suspension of employee contracts of employment and payment of €8.03 per hour to employees by the government.

The French government has announced that requests will be responded to within 48 hours.

Unless similar such measures are introduced in the UK huge numbers of businesses will be failing and will be unable to re-open when this crisis is behind us. The reality is that when they fail, the government will be picking up the unemployment cost in any case.

The government must act now to stop these businesses from going to the wire, leaving many businesses having to rebuild from scratch, following this public health crisis, with current support within the budget not being enough.

We ask that every business owner, operators, artist, and employee within this industry come together to demand that the government step forward, as it did during the banking crisis, and do the right thing – giving clear direction and providing emergency medium-term funding for Night Time Economy and Events Industry to underwrite the next period.”

THE GOVERNMENT NEEDS TO IMPLEMENT THE FOLLOWING RELIEFS

  • Business Rates Suspension for all
  • The government needs to allow for a financial provision for all staff employed or self-employed who cannot work (up to 3 months)
  • Tax Relief for the Hospitality Sector for the next 3 months or foreseeable disruption
  • 0% VAT for the Hospitality Sector for the next 3 Months or foreseeable disruption
  • Government to Support Landlords to allow them to give rent holidays for businesses for three months.
  • Government to facilitate financial support (Bailout) for businesses if forced to close / or ensure government forces insurances to cover closures with an additional clause for all businesses including events and festivals.
  • SSP needs to be considered for all companies irrelevant of staffing level and self- employment status.

Please sign this petition, to encourage the Government to act sooner rather than later, to reduce the negative impact that could lead to several venue closures, lots of jobs lost and devastating consequences to our hospitality and entertainment industries.