Home Business News Burnham calls for the government they cannot ‘fail to provide any support for businesses’ amid Omicron wave

Burnham calls for the government they cannot ‘fail to provide any support for businesses’ amid Omicron wave

by LLB political Reporter
16th Dec 21 10:45 am

The Mayor of Greater Manchester, Andy Burnham has called on the government to bring forward a support package “today” for hospitality, events, music and other affected sectors.

Burnham tweete, “You can’t tell people to “think carefully” before going to pubs and restaurants and then fail to provide any support for the workers/businesses affected.”

He said in another tweet, “To be clear – if support is provided to businesses, it should be on the clear condition that some is passed on to staff facing reduced income over the holiday period or being laid off (ie a furlough).”

He added, “To be clear – if support is provided to businesses, it should be on the clear condition that some is passed on to staff facing reduced income over the holiday period or being laid off (ie a furlough).”

The  Health Minister Gillian Keegan told Sky News, “We do still have support in place for businesses.

“So we’ve still got VAT reductions, we’ve still got business rate cuts of 66%, and we’ve still got recovery loans in place.”

This comes as UKHospitality boss Kate Nicholls has made a plea to the government for business rates relief and for VAT discounts to be extended.

The hospitality sector has been battered by the new government’s new Covid restrictions and the messages coming out of Downing Street that a “tidal wave” of Omicron is set to hit the UK.

Nicholls said that sales have plummeted by more than a third in the last 10 days, as around £2bn in sales has been lost this month.

Nicholls added, “It is quite clear that the impact of the current guidance and restrictions has been more hard hitting on an already beleaguered hospitality sector than expected.”

She added, “It is imperative that local authorities release the discretionary grants and rate relief they have to affected businesses immediately and VAT and rate relief support is extended and not turned off prematurely.”

Rain Newton-Smith, CBI chief economist, added, “Further support for struggling firms will be needed if fresh government public health measures prevent firms trading their way to recovery.

“Cash is king, so helping affected firms with cashflow, by ensuring unspent local authority grants are distributed to firms, giving firms more headroom to manage their coronavirus debt repayments and considering measures to reduce the fixed costs of businesses where demand is severely affected should be on the table.”

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