Street calls for more cash for West Mids hospitality sector in ‘acute crisis’

West Midlands Mayor Andy Street has written an open letter to Chancellor Rishi Sunak urging increased support for the region’s beleaguered hospitality industry.

Street said the sector is facing an “acute crisis” following the second national lockdown and the decision to place the region into the new Tier 3 restrictions. He points out that venues will now be forced to close at a time of the year when they bank most of the money which helps them survive.

Unless action is taken, says Street, many of these businesses across the West Midlands could face a “crippling blow”.

He adds: “They now face a Christmas period with no prospect of making up for all the custom lost since March. More than just commercial enterprises, these venues are often anchors for the communities they serve. Their loss would be keenly felt.”

In an effort to stave off a Tory rebellion at today’s vote on the new Tier system, Prime Minister Boris Johnson yesterday promised disgruntled MPs that hospitality venues would receive extra financial help, but no detail was forthcoming. At present hospitality businesses can apply for a £3,000 a month grant from the Government.

Late yesterday afternoon the Government published its “cost-based evidence” as to why each region was placed into which Tier, but this amounted to little more than previously published information from last week’s OBR report and drew criticism for being released too late in the day for MPs to digest.

In his letter to Sunak, Street continues: “Businesses in this sector need further clarity on the basis for the tiering decisions. Sufficient detail on the epidemiological analysis will help the sector understand why the current arrangements were decided on. And a reiteration of the commitment to review these tiering decisions – on a regular, fortnightly basis, using consistent and clear criteria – will allow businesses to have the confidence they need to plan ahead.

“Throughout this crisis you have acted quickly and decisively to support this crucial sector. Now, as we enter its final months, we must request this further urgent action. Your support now will ensure these businesses and livelihoods are protected, and that the help that you have already provided does not go to waste.”

However, any further help may be too late for some. Last week Jabbar Khan, founder of Lasan Group of restaurants, told TheBusinessDesk.com: “As an independent restaurateur, with four businesses across the city we’re incredibly disappointed in the Government’s announcement to place Birmingham and Solihull in Tier 3. Calling it Tier 3 does not get away from the fact that this is a continued and full-scale lockdown, especially for the hospitality sector; an industry that is being systematically destroyed.

“Whilst this may be viewed by Government as a two-week measure, the true effects are much harsher. Tier 3 effectively shuts down many of this sector’s great businesses and denies them an ability to trade over a period that is critical for every hospitality business – big and small.

“By cancelling Christmas for the hospitality sector, the Government has effectively wiped out three months of trade and which will result many businesses closing, jobs being lost, and city centres left empty. The sector will never recover from these measures.”