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British companies are calling on the government to expand emergency support for Covid-19 because Boris Johnson is preparing to postpone the end of the lockdown restrictions by up to one month.
Due to the rapid increase in cases of the Delta variant first detected in India, the Prime Minister is expected to announce that from June 21, the time for the final relaxation of the lockdown restrictions in the United Kingdom will be postponed by four weeks.
Kate Nichols, British hospitality The CEO said this morning that a one-month postponement would be devastating for industries that have been hit particularly hard by the pandemic.
She told the BBC this morning that ministers must provide more support, including extending the ban on commercial tenant evictions and debt collection that will be lifted on June 30.
If the legal restrictions on social contact do not end, sports, bars, and cinemas will still face capacity constraints, and nightclubs will continue to be closed.
According to a report earlier this month, Nearly a quarter of licensed premises in the UK remain closed, Because the current restrictions and space constraints make the operation impossible.
Nicholls warned that many of these companies “have nowhere to go” after 16 months of no income. She explained that for the rest of the time, June 21 is the day when they can start profitable trading again.
The four-week delay will cost the hotel industry approximately 3 billion pounds in lost saless, Nichols said. Therefore, it is vital for the government to provide assistance in several key areas.
One is rent arrears. The hotel company currently owes £2.5 billion in unpaid rent, which has been accumulated since the first Covid-19 lockdown. Nichols said it is crucial MoratoriumIt will expire on July 1 and has now been extended.
These protective measures can prevent landlords from evictions of commercial tenants or use statutory requirements or liquidation applications to recover rent arrears.
Nichols said that hotel companies also need more breathing space for operating expenses. As the 100 million pounds bill will hit the industry in July, by then The current temporary exemption expires.
She added that this help will help the hotel company continue to operate, get more people back to work, and repair the “broken balance sheet” after 16 months of sub-profitability transactions.
The government is also facing calls to postpone the vacation plan, which currently pays 80% of employees on vacation.
From July 1, the government’s share will be reduced to 70%, and employers will contribute 10% as part of the exit schedule, which will end at the end of September.
However, if some hotel companies are unable to open while others are still operating under Covid-19 restrictions, then they will have difficulty meeting the new costs.
Claire Walker Co-executive director British Chamber of Commerce, Said (via The Times):
“We will call on the government to provide more cash subsidies, at least equivalent to the level provided during the first lockdown, and postpone the gradual reduction of government payments in the vacation plan planned to be implemented in early July.”
The decision to extend the restriction beyond June 21 will be made tonight. But the delay seemed inevitable, and ministers were told that the four-week delay in relaxing all Covid restrictions could prevent thousands of people from being hospitalized.
Agenda
- Today: CBI Holds “Zero Road” Conference on Climate Change
- 10 am British Summer Time: Eurozone industrial production
- 2pm British Summer Time: Bank of England Governor Andrew Bailey speaks at the annual meeting of the Association of Corporate Treasurers
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