South West business leaders are calling on Chancellor Rishi Sunak to extend Covid support for lockdown-hit businesses into the autumn – or even 2022.

West Country Chambers of Commerce want the Chancellor to use his March 3 Budget to continue safety-net schemes for businesses, particularly in the badly-affected tourism, hospitality and leisure sector.

There has already been much speculation that Mr Sunak will extend the furlough scheme, due to finish at the end of April, until the summer. And it is expected he will continue other Covid-19 support measures, such as business rates and VAT relief, until June.

But Stuart Elford, chief executive of Devon and Plymouth Chamber of Commerce and chair of British Chambers of Commerce South West, said the support packages need to be extended until the autumn – at the earliest.

Kim Conchie, chief executive of Cornwall Chamber of Commerce

And Kim Conchie, chief executive of Cornwall Chamber of Commerce, said the Duchy’s economy has been so badly hit by the Covid-19 lockdowns it needs business support to continue for another year.

Both Mr Elford and Mr Conchie said they were disappointed by Prime Minister Boris Johnson’s “road map” announcement, setting out stages when the economy could reopen.

Mr Elford said: “The recently announce road map to recovery was broadly well-received by business, but it was disappointing that financial support wasn’t mentioned at the same time, so businesses will be turning a keen eye on the forthcoming Budget.”

And Mr Conchie added: “I was very disappointed that the PM’s road map did not give businesses any feeling there is a stable playing surface come what may in Covid ups and downs.”

Stuart Elford, chief executive of Devon and Plymouth Chamber of Commerce

So both men want the Chancellor to address the shortcomings in his Budget statement, with Mr Elford saying: “Businesses are facing a cliff edge as VAT and business rates are due at the same time that the furlough scheme comes to an end and any CBILS or BBLS loans taken out are due to be repaid. This is exacerbated for the leisure, hospitality and tourism sector that has been decimated during the pandemic.

“Businesses are keen to reopen and return to full operations, but it is not a case of simply flicking a switch and turning the lights back on. There are long lead times for supply chains, staff need to be brought back in proportion to demand and most businesses aren’t profitable until they are operating at full capacity.

“So we are calling upon the Chancellor to extend the packages of support available until the autumn at a minimum.”

He stressed: “We want to see the furlough scheme extended and the reduction in VAT for the leisure, hospitality and tourism sector remain, combined with the deferral of VAT and business rates payments.

“Finally, while accepting that the cost of the pandemic will need to be paid eventually, now is not the time to raise business taxes, but to allow businesses to recover and thrive.”

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Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.

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Mr Conchie said he wants “categoric assurance” that the furlough scheme, business rate relief and VAT holiday will persist throughout the whole of the next financial year.

“In other words, until March 2022,” he said. “This will enable businesses writing their business plans and forecasts for next year the ability to make investment, recruitment, training and marketing expenditure decisions for the year not dependant on whether Covid gets better or, God forfend, worse again.

“That would allow Cornwall’s businesses, and therefore the economy, to bounce back more quickly,” he said. “This might sound like it would cost the Treasury and therefore the taxpayer a lot. But, in truth, it would cost a lot less than lots more hospitality businesses going bust, thousands more losing their jobs, the attendant impact on mental health and the care system and the resultant cost to Universal Credit.

“The hospitality sector accounts for about 32% of Cornwall’s GDP and about 40% of our businesses so getting this wrong has massive ramifications.”