Covid measures: Urgent action needed - Chamber

Business leaders in Greater Birmingham today called for short and long-term action on the government 's anti-Covid measures following the Prime Minister 's assertion that there would be no more restrictions before Christmas.

Greater Birmingham Chambers of Commerce (GBCC) called for an immediate clarity on aspects of the £1 billion support package announced by Rishi Sunak and action on longer-term support for impacted businesses.

While welcoming the “eye-catching ” figure of £1 billion, the GBCC highlighted the companies in danger of falling through the gaps in support schemes and those with higher overheads for whom the support available does not go far enough.

GBCC 's action plan for Government:

Provide short-term clarity on:

• Speed: How quickly the Chancellor 's £1bn support package will reach businesses. Past announcements on COVID support have often been followed by significant delays - particularly in Government departments issuing detailed guidance to local authorities to enable them to get started
• Duration: The period that this support intended to cover - and whether any additional support would be provided if restrictions and conditions continue as they are significantly into the new year
• Next Steps: The further restrictions that are under consideration in the immediate term following Christmas, whether businesses will be given due notice of any additional restrictions ahead of implementation and whether further support will be provided in the event of significant additional restrictions
• Extent of Support: Whether the additional ARG support will go far enough considering the volume of impacted sectors not included in the hospitality and leisure grants, the needs of businesses with high overheads and limited to exhausted existing discretionary funds held by local authorities. Additional impacted sectors include: tourism, travel, non-essential retail (where footfall has been significantly impacted), wider events, visitor economy and their supply chains from a variety of sectors

The long-term support required:

• Consistent review of the need for additional financial support for businesses that are likely to suffer as a result of the drop in consumer demand or further restrictions
• Expediating the rollout of the Business Rates Relief Fund so local authorities can help impacted businesses as soon as possible
• Maintaining a longer-term reduction of VAT in place beyond March to help those hospitality and non-essential retailers likely to suffer due to lower footfall in city centres
• Reducing the cost of PCR testing for international travellers in a bid to maintain demand in the aviation and travel industry
• Reintroducing free testing kits for businesses as more individuals are expected to take daily tests
• Providing flexibility of the repayment of CBILs to those businesses suffering significant financial hardship but not classed as in distress

Read more information on the £1bn support package.

The GBCC 's calls for action were echoed by Tracey Stephenson, co-founder and joint managing director of Staying Cool, who said: “The Government 's latest support package is a much-needed boost for our industry during an incredibly challenging time.

“We are pleased to see that further targeted grants for businesses like us are being introduced; however, these do not reflect the scale of the economic problem we are facing.

“We also need urgent clarification on any potential incoming Covid-19 restrictions, how Government plans to boost consumer confidence, and what further financial support they will provide if the current situation worsens. ”

Henrietta Brealey, the GBCC 's chief executive, said: “Yesterday 's announcements from the Chancellor will no doubt be welcomed by many businesses across the country who are battling through the latest phase of the pandemic.

“Alongside the Greater Birmingham business community and our partners, the Chamber have been working hard to highlight the very real impact that the current response to the Omicron variant have had on businesses in a variety of sectors.

“The headline figure of £1bn of additional support is very welcome - although, as is often the case with eye catching announcements, behind it businesses still have a number of urgent questions that need addressing.

“This is particularly true for those sectors at risk of falling through the gaps in support schemes and those with higher overheads for whom the support available does not go far enough.

“Many impacted businesses still bear the impact of previous Covid lockdowns and were relying on a strong Christmas and new year trading period to see them through to 2022. This time, there is no furlough support available to help them manage salary costs.

“Critically, businesses still need clarity on what is yet to come in terms of short term Covid measures and what they could expect in terms of further support should additional restrictions be activated, or the current situation extend significantly into 2022. While confirmation that there will be no further restrictions over the next four days is welcome, it does not address businesses ' concerns about what may or may not happen immediately after.

“We know that every decision being made by the Government will come with trade-offs, careful balancing of interests and impact and ever shifting challenges. As a result, open, honest, ongoing dialogue between Government and businesses is more important than ever before.

“We will continue to seek feedback and intelligence from our members and amplify their voices during this fast-moving time. If your business is being impacted by the latest Covid-19 developments please do reach out via your relationship manager or our dedicated support inbox to help us best represent what 's needed to Keep Business Moving through to 2022 and beyond. ”

To share your feedback please contact the Chamber on [email protected]

Responses from other Chamber members included:

Hamza Waris, chief operating officer at Pak Travels, said: “It is incredibly disappointing to see a lack of Government support for the tourism and aviation industry, who have been devastated over the past two years, in yesterday 's announcements.

“Whilst some of the Chancellor 's measures, such as the ARG top up, will help support businesses across the country who are not eligible for the hospitality grant, it is merely a drop in the ocean compared to the sheer scale of economic loss our industry has experienced. ”

Sam Morgan, chief executive officer of About Dining - Craft, Divide, 8 and Divide by 8, said: “At face value, £1 billion sounds like a large amount of money; however, when you consider £6,000 is equivalent to 7.4 per cent of business we have lost, you realise it really isn 't.

“The Chancellor uses previously issued grants as the benchmark for the £6,000 being applied, but previous grants were woefully inadequate as only covered 13.9 per cent of the loss we incurred. This simply shows a repeat of the previous lack of support which meant businesses needed to take out substantial debt to survive.

“The Government 's response continues to demonstrate a lack of understanding and appreciation for the scale of the problem caused by the pandemic. ”