Why grants for hospitality sector during pandemic are wholly inadequate - Adam Jones

There’s a gaping void of tangible scientific evidence that relates specifically to the hospitality sector and the rules and restrictions placed on our industry feel like they’ve just been picked out of a tombola.

Emerging from a national lockdown into Tier 3 meant continued closures for pubs and restaurants, pulling the rug from under an industry already on its knees. And now we are back in lockdown again.

The misconceptions around the support provided to hospitality to date simply don’t paint a clear picture of the reality for businesses.

Current local restrictions grants are wholly inadequate to help with the mounting ongoing costs of forced closure, which for Tattu have grown to more than £700,000 since March.

Whilst access to CBILS was essential for survival earlier this year, repayments are due to begin in April 2021, alongside business rates and a return to 20 per cent VAT, which will create a ‘perfect storm’ of financial pressures for our industry.

Without specific sector evidence, there’s a common perception that our industry is being unfairly targeted whilst other sectors have been allowed to reopen unchecked.

Especially given the huge investment into ‘Covid secure’ compliance systems that Tattu, and operators at all levels, made to ensure our venues were as safe as possible.

Along with equipment, such as temperature scanners, sanitiser stations, screens and PPE, we removed 20 per cent of covers, reduced pacing by half to slow the flow of guests and increased turn times on tables to allow for additional cleaning. Why is it then, that these same measures are not required in other sectors currently allowed to trade?

The realisation of London being placed into Tier 3 being an ‘economic disaster for jobs and businesses’, only suggests to me that jobs and businesses in the North are seemingly less important.

If we’re to have a chance of recovery, Government must recognise the importance of the hospitality sector – not just as an employer or a major contributor to GDP, but as a driving force behind the enjoyment of life and the vibrancy of our cities. A country without its world-class hospitality businesses paints a very bleak picture for our communities.

If we must remain closed as part of local restrictions, businesses in these areas must see proportionate support. In the current restrictions, businesses are liable for Employer’s National Insurance and pension contributions despite having no income. Current grants don’t even cover the payroll costs to process furlough for our employees.

We must also see evidence of long-term solutions. A reduction in VAT for food purchased in hospitality settings could stimulate a revival for the industry over the next five to ten years, revitalising our high streets and driving employment opportunities for younger generations.

Business rates holidays are essential for hospitality in 2021, with more targeted support for disproportionately disadvantaged businesses.

The Furlough Retention Bonus was an important lifeline that many businesses had built into their cashflow.

Above all, we need to see better communication with our industry and in our regions. There has been a dangerous impact on the mental health of those learning the fate of their business through leaks to press before official announcements are made.

This irresponsible governance of our livelihoods has been equally as torturous as the restrictions themselves, and yet it is completely avoidable.

By Adam Jones - Founder, Tattu Restaurants

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