Southsea restaurant calls on chancellor to do more to support hospitality businesses

Terence Carvalho, from Becketts, has written to the Chancellor Rishi Sunak asking him to bring in more ways to help businesses survive the third coronavirus lockdown.

This comes after an announcement was made on Monday that businesses would be able to claim a one-off grant of up to £9,000 depending on their size and rates paid.

In the letter, Mr Carvalho said: ‘As expected and rightfully so, England has been plunged into another national lockdown.

‘Whilst the support you’ve offered to the hospitality industry has been welcomed, I’m afraid to say that the levels of the proposed business grants will not be enough to keep the majority of hospitality businesses going.

‘With the one-off grant of up to £9,000, our business is only entitled to claim £6,000 due to our rateable value being £45,250.

‘Our overheads with the business being closed are in excess of £10,000 per a month. How are we meant to cover these ongoing losses off the back of a year that has seen our income literally halved?’

Mr Carvalho also urged the chancellor to extend the furlough scheme, which is due to end in April and for a continuation of the reduced five per cent VAT rate, which is due to end in March.

He added: ‘Hospitality is the third biggest industry in the UK contributing 3.2 million direct jobs to the country.

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‘The social and economical impact of the hospitality industry is a major part of how our society is able to thrive.

‘Mr Sunak, I urge you to consider the following: value of grants increased for businesses forced with closure, extension of the reduced VAT rate, extension of the furlough scheme, extension of the deferred VAT payment to 31 March 2022, deferral of unpaid PAYE tax and NIC until 31 March 2022.

‘If these are not implemented, many more businesses within our industry will be lost along with countless jobs.

‘If that happens, you must ask yourself “what has been the point of everything the government and our industry has sought to achieve over the past nine months”?

‘We ask you not to allow your well-conceived furlough scheme to become the unemployed waiting room for the hospitality sector.’