Delay in lockdown easing a bitter blow for businesses

Businesses have criticised Prime Minister Boris Johnson’s decision to delay ‘Freedom Day’, when remaining lockdown restrictions were expected to be lifted on June 21.

Instead, he announced yesterday that, due to the increase in COVID-19 infection rates, the unlocking will be delayed until July 19, with an option to ease restrictions two weeks earlier if the scientific data allows.

Michael Kill, chief executive of the Night Time Industry Association (NTIA), which also includes Greater Manchester night time economy adviser, Sacha Lord, said: “This is a hugely devastating blow for the very industries that have been hardest hit by this pandemic. In a very real sense, the Prime Minister has ‘switched the lights off’ for an entire sector.

“Many businesses have not survived this pandemic and others are on a financial cliff-edge, unable to operate viably. Hundreds of thousands of jobs have already been lost, a huge pool of creative talent has been swept away, and we have been left to suffer extreme financial hardship.”

He added: “This delay will drive confidence in the sector to a new low, culminating in more of our workforce being forced to leave the industry, and customers, who have been starved of social engagement, attending illegal unregulated events in place of businesses that are well-operated, licensed and regulated.

“These businesses are overburdened with debt and so any decision to delay the full reopening of our sector must be paired with a robust financial support package, including additional restriction grants, exclusion from furlough contributions, extension of loan repayment holiday for CBILS/BBS as well as business rates and VAT relief for the next 12 months, not forgetting the £2.6bn in commercial rent debt left unresolved.

“The Government must understand the human impact of this decision, not only considering the public health challenges of the virus but also the people within our sector who are suffering terribly and the real health risks that this represents. This is particularly important given the overwhelming confidence in the vaccination rollout, and the ability for our sector to deliver COVID-safe and regulated environments.”

Bill Addy, chief executive of Liverpool BID Company, said: “We are disappointed to see the 21 June date pushed back, especially for our city’s famous night time economy and events industry, which has been among some of the hardest hit by the pandemic. We would urge the Government to ensure that support is linked to enforced closure so that our creative industries and hospitality sector is not hit even further by being forced to lay dormant.

“We understand the commitment to data and not dates, but clarity is vital here. There is a lot of frustration around this, and it is understandable.

“We need to see the figures, because what we understood from the Liverpool pilot schemes was that, with a negative test before the events, there was no COVID outbreak. Show us the data that shows it isn’t safe to reopen.”

He added: “We are talking about an industry that is used to negotiating contracts with international artists, managing complex venues, selling thousands of tickets, adhering to government guidelines – they understand the challenge and they are determined to be able to open safely. Work with them on how to do that. Don’t just bolt their doors closed.

“Support must continue if businesses are not able to open their doors and if there is reduced demand. At the start of this pandemic we came together as a city and showed true leadership to protect our industries. We need to see the same thing again.”

A group of business leaders representing commerce in Manchester city centre, also expressed their concern and frustration at the Government’s decision to postpone the easing of COVID restrictions.

UnitedCity represents more than 120 businesses in Manchester. Its founder members, including Gary Neville, Chris Oglesby, Will Lewis, Lisa Morton, and Frank Mckenna, said in a joint statement: “We are, once again, deeply disappointed at an approach to the virus which appears to be increasingly inconsistent and incoherent.

“Having pushed out a strong message that vaccinations, along with a strong testing regime, would save our summer, Boris Johnson and his colleagues have now seemingly abandoned that strategy, and moved the goalposts once again.

“We accept that infection rates, as was inevitable, have increased. However, hospitalisations and coronavirus deaths are, thankfully, dramatically reduced.

“Ministers now appear to be moving to a position where they want to eradicate COVID completely before allowing the country to open up normally once again. That is both unrealistic and unacceptable.”

The statement added: “This latest announcement will be catastrophic for many businesses, and for a good number of them this will be the final nail in the coffin. And, as much as the Prime Minister has suggested he is ‘confident’ that the latest delay will end on 19th July, there will be understandable scepticism about his latest dangled carrot.

“Beyond the impact that restrictions and lockdowns are having on Manchester’s economy and business community, there is a ticking timebomb of mental health issues, a huge backlog of operations and diagnosis for critical illnesses, including cancer, and we know that the impact on young peoples’ education has been massively impacted.

“This cannot go on. As former PM Theresa May said recently, it is incomprehensible that one of the most heavily vaccinated countries in the world continues to refuse to give its citizens the freedoms that those vaccinations were supposed to guarantee.”

Blackpoool-based Federation of Small Businesses (FSB) national chair, Mike Cherry, said: “The 19 July must be the final date for when these restrictions will be lifted, it’s crucial that we also understand the impact that these delays have on livelihoods as well as mental health.

“Employer contribution changes that are due to take hold on the 1 July should delayed until all restrictions have eased, therefore minimising the immense financial burden that small firms are facing.

“Many who have been unable to open are now faced with paying back their Bounce Back Loans. Government should consider writing off spent COVID loans for the most restricted firms.

“Small firms need support now, they understand the need to take a cautious approach out of lockdown, but not at the sacrifice of businesses, jobs and livelihoods. So, the Government must act to prevent further economic casualties.”

Paul Cherpeau, chief executive of Liverpool Chamber, said: “Many businesses will be disappointed, but realistic in their response to the decision to delay the full reopening of our economy.

“So many lives and livelihoods have been affected by the pandemic and the restrictions it has brought upon the country. The process of unlocking must be irreversible – the last thing anyone wants is a return to greater restrictions – so a pause can be justified if it’s a means to that end.

“However, what must happen next is a renewed, strong commitment to providing targeted support to those sectors which will be most adversely affected or undermined by this latest delay, including hospitality and the arts.

“The success of the vaccine rollout and the receding link between Covid-19 infections, hospitalisations and deaths should precipitate an imminent lifting of all restrictions and we encourage a full reopening of our economy as soon as is practically possible.”