Wed 3rd Mar 2021 - Sector leaders warn long-term support measures still needed Sector leaders warn long-term support measures still needed: Sector leaders have warned long-term support measures are still needed for the industry despite the Budget giving some “short-term comfort”. Chancellor Rishi Sunak announced hospitality businesses will continue to receive a 100% business rates holiday for the next three months – and will then see their bills discounted by up to two thirds for the rest of the financial year. The reduced VAT rate of 5% for accommodation and foodservice businesses will be extended until the end of September and then an interim rate of 12.5% will be in place for the following six months. The cut was not extended to include alcohol but duty was frozen. Sunak also confirmed the extension of furlough and “restart” grants of up to £18,000 for the sector. British Beer & Pub Association chief executive Emma McClarkin said: “Overall, this is a good Budget in the short term. However, this is just the start of the journey on the hard road to long-term recovery. The chancellor has made it clear he recognises the vital role local pubs play in their communities. Now he must continue that commitment by ensuring Britain’s pubs and breweries are supported in the long term. This should start by extending the VAT cut on hospitality to all drinks until at least the end of the year. We also need a fundamental reform of VAT, business rates and beer duty to ensure the thousands of pubs and breweries across the UK can thrive and help drive the social and economic recovery we urgently need.” Lawson Mountstevens, managing director of Heineken-owned Star Pubs & Bars, added: “It is good to see the chancellor step up and provide additional support for pubs and we hope today’s announcement paves the way for future alcohol duty and business rates reform to help our sector longer-term.” Mark Davies, chief executive of Hawthorn, the community pub arm of NewRiver, said: “While the Budget will provide some much-needed support for pubs until reopening, it falls far short of the measures we were hoping for, particularly on business rates and VAT, and this will put some community pubs at risk of closure.” Simon Wilkinson, chief executive of better burger brand Byron, told Propel: “I am not sure the government could or should have done more, especially considering the amount of debt that needs to be paid back over the coming years. Clearly there are concerns for businesses who have rent debts, but landlords need to understand the situation and work in partnership with tenants, I am not convinced it’s the government’s role to intervene when business common sense should prevail.” Chris Jowsey, chief executive of Admiral Taverns, tweeted: “I think it has some positives but I’m very disappointed for community wet-led pubs. VAT cut won’t have benefited most for six months as businesses closed.” Scottish Hospitality Group spokesman Stephen Montgomery said: “There are significant measures in this Budget, many of which are helpful, but for Scottish hospitality businesses the devil will firmly be in the detail. Given what our national hospitality sector has endured over the past year, it needs every possible pound of support and more, as it works to rebuild and recover.” Jonathan Neame, chief executive of Kent-based brewer and retailer Shepherd Neame, added: “After a year of huge anxiety and uncertainty, we welcome the clarity provided by these announcements. Our licensees and team members can now look to the future with confidence as we develop firm plans to remobilise and to prepare to do what we love most – opening our doors from 12 April and welcoming customers back. There’s still a huge amount to be done, and it won’t be an easy road, but we are excited about our prospects at the dawn – perhaps – of one of the greatest reboots our country has ever experienced.” East London Pub Co founder Patrick Fawley said: “Businesses need to be propped up properly so they can restart and create meaningful and long-term employment. The furlough system needs reviewing so employers can take on staff confident in the knowledge they’ll be supported if another lockdown happens. We’d like to open three more pubs this year, but we need this reassurance. We’re currently in negotiation with Tower Hamlets Council to take over a car park to create outdoor space next to our Spitalfields pub, The Gun, but engagement is poor and it wants to charge an exorbitant amount. We all need to work together to revive the economy.” Marcos Fernandez Pardo, managing director of Iberica and Arros QD, added: “[There is] still the ongoing problem of rents due that hang over many businesses, which have not been tackled and will ultimately make viable businesses fail through the cash flow when the legal containment is lifted. Associating help to renovate high streets for institutional landlords in exchange for common agreed terms to tenants would have been very welcome.” Adam Jones, founder of contemporary Chinese restaurant group Tattu, said: “In addition to the financial measures announced, the government must now turn its support to building back consumer confidence to return to our towns and city centres and encourage public spending.” Jeremy Simmonds, co-founder and co-chief executive of Swingers, added: “Our business has traded for about two months out of the past year and the government support has been wholly inadequate. As an industry we have overwhelmingly supported the need to protect public health. My business is one of the lucky ones with supportive investors, however for the vast majority of businesses, without further investment, far beyond anything offered to date by the government, sadly they will fail.” Brodie Meah, co-founder of Top Cuvee in London, said: “VAT reductions and rates relief for hospitality is great, but only if we're allowed to trade in a profitable way during that period!” Gareth Ogden, partner at haysmacintyre, added: “Operators who will not be able to reopen until 21 June might have hoped for more of a cash flow leg-up for a longer period, during which they will be getting trade back up and running as rent commitments start to kick in again.”