More than 1,300 Plymouth businesses have been asked to lobby the Government for urgent support ahead of the Budget after it was forecast the tourism sector alone will lose £48billion nationally in 2021.
The organisations Destination Plymouth and Plymouth City Centre Company have written to members asking them to send a letter to their MPs calling for more assistance for businesses in the tourism, hospitality and retail sectors.
The two organisations, which run Plymouth's two Business Improvement Districts (BIDs), say the visitor economy has lost half its income since the coronavirus pandemic arrived and subsequent lockdowns were enforced.
They said businesses in the three sectors have lost £75billion in revenue nationally and that, despite the vaccine roll out, social distancing and travel restrictions are likely to be in place for some time, causing further economic turmoil. The organisations cite VisitBritain’s forecast that the tourism industry will lose a further £48billion in 2021.
They want businesses to pen letters to MPs ahead of Chancellor Rishi Sunak’s March 3 Budget saying how they have been severely impacted by the Covid-19 crisis.
They want the letters to stress the need for the reduced 5% VAT rate to be kept in place for all of 2021, and not end on April 1, and extended to cover pubs.
Destination Plymouth and Plymouth City Centre Company also want the 100% business rates relief scheme extended for 2021/22 so the sectors can recover and say it is especially crucial for hard hit businesses such as coach and tour operators, contract caterers, language schools and event organisers and suppliers.
Furthermore, they want a commitment from the Chancellor to reform the business rates system with help for under-pressure city centres, such as Plymouth’s, where retail is suffering.
The two organisations also want businesses to call for the Coronavirus Job Retention Scheme to be extended, but for businesses which are significantly impacted by continued social distancing or travel restrictions, so they can continue to retain staff on furlough.
In a letter to businesses, Amanda Lumley, executive director of Destination Plymouth, said: “We recognise the Covid-19 pandemic is causing significant issues amongst businesses like yours in the tourism, hospitality and retail sector.
“Our indications show that over 50% of visitor sector income has been lost since March 2020 and as we continue in lockdown cash flow is becoming harder.
“Over the past few months we have been working closely with wider South West region as well as the Tourism Alliance to lobby on your behalf for more support including business grants, the extension of the 5% VAT rate, furlough scheme and business rates relief.
“Now, prior to the Chancellors budget in March we would like to ask you to write to your local MP asking them to support this request to Government to help businesses like yours in the sector to be able to survive until the economy re-opens.”
Steve Hughes, chief executive of Plymouth City Centre Company, made a similar plea to his membership and said: “We will continue to lobby tirelessly on your behalf, however, this is your opportunity to have a voice and to support these specific ‘asks’ to Government directly.”
The call for action came as Prime Minister Boris Johnson confirmed the Minister for Small Business, Consumers and Labour Markets, Paul Scully, will meet petitioners calling for a Minister for Hospitality.
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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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The meeting was agreed after chair of the Petitions Committee, Catherine McKinnell MP, wrote to the Prime Minister urging him to engage with the hospitality sector after raising the issue at the latest session of the Liaison Committee.
Petitioners including Claire Bosi, editor of Chef and Restaurant Magazine, will discuss their petition Create a Minister for Hospitality in the UK Government, which was signed by more than 208,000 people.
Ms McKinnell said: “Whilst I welcome the Prime Minister’s decision to agree to our call for the Government to meet with petitioners and hear their concerns about the need for greater support for the hospitality sector, I hope that the Prime Minister himself will consider their request that he creates a Minister for Hospitality to oversee Government delivery for this crucial diverse sector.
“Although the Government has provided a range of support to the hospitality industry throughout this pandemic, there are still great challenges ahead and a coordinated approach on this issue is vital at this critical time.
“The hospitality industry has been hit particularly hard during the pandemic, and remains vulnerable. Thousands of businesses are struggling and unclear about what lies ahead in the coming months, it is essential there is a focused voice within Government to represent the hospitality sector to ensure its place as a key driver of economic and cultural growth in every community.”
