SUPPORTING PUBS
January 2021
Thank you for contacting me about supporting our pubs.
No one wants to see further restrictions and I understand that many pub landlords have concerns about the new lockdown measures. However, in light of the rapid spread of the virus across the country and the current transmission rates, these measures are regrettably necessary to prevent the NHS from being overwhelmed.
I appreciate your concerns regarding the sale of alcohol for takeaway by pubs. While this has been permitted under previous restrictions, I understand that the Government is concerned about the impact that this could have on facilitating the unlawful gathering of individuals outside of pubs. As such, it has been decided that pubs may only sell food and non-alcoholic drinks for takeaway, although they may still sell alcoholic drinks as part of a delivery service.
Given this it is reassuring that the Chancellor has unveiled further economic support for retail, hospitality and leisure businesses, including pubs, in light of the new lockdown restrictions. New one-off top-up grants have been announced, worth up to £9,000 per property, to help businesses through to the spring.
For those businesses not eligible for the grants, a £594 million discretionary fund is being made available by the Government as a matter of urgency.
The new one-off grants come in addition to billions of pounds of existing business support, including grants worth up to £3,000 for closed businesses, and up to £2,100 per month for impacted businesses once they reopen.
I welcome that the Coronavirus Job Retention Scheme has been extended until April in response to new national restrictions, and to give people and businesses across the whole United Kingdom the certainty they need over what will be a difficult winter. Under the extension, the Government will pay 80 per cent of wages up to a cap of £2,500, with employers paying employer National Insurance Contributions and pension contributions only for the hours the employee does not work. Flexible furloughing will be allowed in addition to full-time furloughing.
I have been listening to representatives of the sector from the outset and know that they are keen that measures, put in place in respect of VAT and business rates, are extended. Currently the temporary reduction in VAT (5 per cent from 20 per cent) for hospitality and tourism businesses has been extended until 31 March 2021 and all retail, hospitality and leisure businesses will benefit from paying no business rates for the 2020-21 financial year, regardless of their rateable value. This relief applies to over 350,000 properties and is worth almost £10 billion. I know the sector needs more.
I was in Westminster on the 11th and saw that the Chancellor was making a statement on the floor of the House of Commons that afternoon so I used that opportunity to press him directly on support for the hospitality sector, as you can see from the following transcript.
Economic Update
Volume 687 – debated on Monday 11 January 2021
https://hansard.parliament.uk/Commons/2021-01-11/debates/150AAFF8-A2F3-…
Conor Burns
(Bournemouth West) (Con)
“My right hon. Friend the chancellor knows – not least from the conversations he had last November with businesses in my constituency – how heavily our local economy depends on the hospitality sector and how hard hit it has been. Will he give me and the sector an assurance that he will look sympathetically at its calls to extend the lower rate of VAT and the business rate holiday? What message has he got for the sector about its importance to the UK economy and to the wellbeing and quality of life of our citizens?”
Rishi Sunak
“I thoroughly enjoyed my conversation with my right hon. Friend’s local businesses. He mentioned exactly the
right point: quality of life. This is not just about our economy and jobs; this industry is so vital for our wellbeing, and it brings spirit, life and vitality to our local communities. He can rest assured that I will want to continue supporting the industry, as I have done in the past, and I will bear what he says in mind for future Budgets.”
You will also notice that the Chancellor acknowledged that I got him to do an online meeting with local business people - including some from the hospitality sector - where these points were put to him. I will continue to push Ministers to deliver the support the sector needs to ensure that as many of these businesses as possible can survive this pandemic and be in a position to reopen profitably when restrictions are gradually lifted.
Thank you again for taking the time to contact me.
