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24Rd February 2021 Dear Chancellor, SHORT-TERM EMERGENCY

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24Rd February 2021 Dear Chancellor, SHORT-TERM EMERGENCY 24rd February 2021 Dear Chancellor, SHORT-TERM EMERGENCY SUPPORT NEEDED IF THE HOSPITALITY SECTOR IS TO REACH THE END OF LOCKDOWN AND SECURE OUR RECOVERY The Prime Minister’s long-awaited roadmap out of the current lockdown is truly devastating to the tourism, hospitality and pub sector. The restrictions in place mean that there will be no sustainable reopening until 21st June, with May 17th the first opportunity for any reasonable trading. Restricted trading does not allow breakeven across the industry, so it is crucial that the 21st June date is kept to. The length of this delay will severely jeopardise the survival of large numbers of businesses in our sector. We will miss the critical Easter period and the first May Bank Holiday weekend – and will have only traded one bank holiday in the last year. This will be particularly harmful to seasonal and businesses. Britain’s diverse tourism offer risks getting off to an extremely slow start. The latest ONS data shows that a fifth of hospitality businesses will run out of cash by the end of February, and an additional two-thirds will be out of cash before the May reopening date. The situation is truly perilous for businesses and jobs. There is a significant gap between the current support provided by the Government and the fixed outgoings associated with a closed hospitality business. These will vary by size and location, but an average size pub or restaurant could be having to pay out £10,000 per month. Hotels, tourism and leisure sites will be paying hundreds of thousands of pounds a month in fixed costs. The effect of a failure to plug this gap is inevitable. If Government doesn’t act now to close this gap businesses will fail, premises will close, high streets and communities will be devastated, jobs will be lost. The national recovery will be delayed affecting our national growth and prosperity. This will result in a sustained drop in Government revenues, which in turn will impact public services. It will risk wasting so much of the support the Government has already put in place. Government has said it “will continue to do whatever it takes to protect jobs and livelihoods across the UK”. To deliver on this we are looking to HMT to provide an emergency package of support as set out below, alongside the existing revival measures we have previously been calling for to support the sector back to growth. Costs must be reduced, and grants increased. The pain is now limited to our sector, so Government can become more targeted with its support for our sector. The measures we have written to you about previously including the extension of the 5% VAT rate and the 100% business rates holiday, are now even more critical for a sustained recovery period. The delay in reopening has deepened the chasm from which we now need to recover – cash reserves are further depleted, debt is increased and the sector’s resilience threatened. This is no time for half measures, we need a commitment to extend reductions and reliefs for at least a year. HMT should also explore widening the VAT cut to other services such as bowling, nightclub, alcohol and wedding venues and a beer duty cut for Britain’s brewers whose main route to market has been decimated. In addition, there are emergency measures needed to facilitate our recovery and to stave off business failures and mass redundancies. • Furlough (CJRS): It is essential that full furlough is extended for hospitality through to the end of September. From the start of March, this should not incur National Insurance Contributions (NICs) for our sector to reflect our specific restrictions. • Grants: The existing rolling grants should be extended until 21st June for our sector. In addition, these must be supplemented with a further one-off payment in March – this must go further than that announced in January and reflect the amounts issued in March 2020 to secure liquidity. State Aid rules must be disapplied from the distribution of these grants – Government must be bold in this area or large businesses will fail. • New costs: Additional costs, in the form of HMRC tax repayments and CBILS repayments are due from April, at the worst possible time for business. The ability to repay the debt gradually is welcome but does not go far enough. HMRC debt and CBILS repayments should not be demanded before 1st July. • Rent debt: The current moratoria lapses at the end of March, risking mass forfeiture of property and winding-up petitions. Treasury must urgently work with other Government departments to extend the moratoria until September, with the objective of using this time for industry and Government to find a definitive solution to this £2 billion debt mountain. We urge you to take swift and necessary action now to preserve our nation’s hospitality sector. As always, we would be happy to meet with you to discuss the points raised and work together to urgently implement the necessary solutions. Yours sincerely, Fullname Company Frank Whitaker Aberdeen City & Shire Hotels Association Aiden McAuley Accor Hotelservices UK Chris Jowsey Admiral Taverns Andy Wood Adnams Ms Kathryn Haskins MIH Alexandra Hotel and Restaurant Paul Wigham All Our Bars Kevin Watson Amadeus Rajesh Rana Andras Hotels James Nye Anglian Country Inns George Arkell Arkell’s Brewery Andrew Botting Artizian Catering Tim Clay Asahi UK Joanne Taylor-Stagg Athenaeum Hotel & Residences Cristopher Varley Aynsome Manor Hotel Steve Holmes Azzurri Group Paul Kelly BALPPA Wendy Bartlett Bartlett Mitchell Bill Wolsey Beannchor Group Alex Tocu Best Western Beamish Hall Rob Paterson Best Western GB James Spragg Big Table Group Steve Alton BII Andy Slee Black Sheep Brewery Ruston Toms FIH Blue Apple Catering Ltd Paul Flaum Bourne Leisure Tom Davies Brakspear Pub Company Mark Derry Brasserie Bar Co Kris Gumbrell Brewhouse & Kitchen Emma McClarkin British Beer and Pub Association Marco Gervasoni FIH MI Brooklands Hotel Stuart P. Johnson Brown's Hotel Mary Willcock Brunning & Price Paula Lindenberg Budweiser Brewing Group UK&I Jitka Vlckova Budweiser Budvar UK David Forde C&C Group Paul Sadler Calcot Health and Leisure Ltd Graeme Arnott Caledonian Heritable Chris Soley Camerons Brewing Tom Stainer CAMRA H. Ashton Crosby Capdesia Paul Davies Carlsberg UK Daniel Sangiuseppe Castlewood Hotels Martin Dalby Center Parcs Tim Jones CH&CO Amanda Newbery Chapel Nightclub Jon Lake Chopstix Group Paul Smith CLG Mark Beirne Cover Group Stephen Leckie Crieff Hydro Family of Hotels Ivan Jimenez Crowne Plaza London Ealing David Loewi D&D London Eric Lucas Daleside Brewery Tim Batham Daniel Batham & Son Richard Bailey Daniel Thwaites, IFBB Michael Dean Dean’s Restaurants Julie Tippins DHP Family John Hayes Disco Bowls Andrew Glover DoubleTree by Hilton Newcastle International Airport Jillian Maclean MBE Drake & Morgan Ltd. Malcolm Duck Ducks Inn (Kilspindie House Ltd) Karl Mitchell E1 GM Hotels Group, Apex Hotels Mark Cotman Eastbourne Hospitality Catherine Roe Elior Graeme C. Bateman Elite Hotels Elyse Waddy Empire Hotel (Llandudno) Ltd Stephen Gould Everards Brewery Lucy Green Exmoor Character Cottages Luke Laws Fabric Life Ltd Cameron Leslie Fabric Life Ltd John Pette Fairlawns Hotel Ltd William Robinson Frederic Robinson Simon Emeny Fuller, Smith & Turner PLC Gary Mallen G C Mallen & Co Claire Flint Gainford Hotels Jaclyn Bateman George Bateman & Son Serena von der Heyde Georgian House Hotel Alexander Salussolia Glendola Leisure Group Peter N Salussolia OBE Glendola Leisure Group Jonathan Webley Grand Hotel (Eastbourne) Ltd Andrew Thomason FIH Gravetye Manor Nicola Kitchener Gray & Sons Tim O'Neill Graysons Hospitality Ltd Sir Francis Mackay Graysons Hospitality Ltd Nick Mackenzie Greene King Matthew Kearsey Hall & Woodhouse Hamish Elder Harvey & Son Brewery Stuart Cook Harviestoun Brewery Echo Lu Haulfryn Group Ltd Mark Davies Hawthorn: The Community Pub Company Thomas Robinson Headlam Hall Country Hotel & Spa Nick Tucker Heavitree David Flochel Heineken UK Stephen Cassidy Hilton Rupert Thompson Hogs Back Brewery Jonathan Holden Holden’s Brewery Norrie Oswald Holiday Inn Newcastle - Gosforth Park Kevin Blamire Holt Leisure Gary Mann Honest Burgers Ltd James Clarke Hook Norton Brewery Co Colin Neill Hospitality Ulster Guillaume Marly Hotel Café Royal Bill Burnett Hotel Indigo & Staybridge Suites Ben Morcombe Hotel Indigo Liverpool Simon Houston FIH Houston & Hawkes Dave Hawkes Houston & Hawkes Arnaud De Saint-Exupery Hyatt Regency London Adam Mayers Hydes Brewery Karan Khanna IHG Richard Hassel Ilsington Country House Hotel and Spa Charlie Gilkes Inception Group Crawford Sinclair Innis & Gunn Emmanuel Moine Inverness Hotel Association Phil Godsal Iscoyd Park William Lees-Jones J.W. Lees & Co John Hutson JD Wetherspoon Richard Kershaw Joseph Holt Damon Roberts Jurys Inn Gavin Ellis Knockomie Inn Andy Townsend Legacy Hotels & Resorts Ltd Jonathan Lawson Liberation Group Berin Jones Llandudno Hospitality Calum Ross Loch Melfort Hotel Alex Reilley Loungers PLC Nick Collins Loungers PLC Harry Murray MBE MI Lucknam Park Hotel & Spa Jeff Hodgson Macdonald Linden Hall Golf & Country Club Ronny A. Maier Marriott International Ltd Tristan Nesbitt Marriott International Ltd Ralph Findlay Marston’s Nick Varney Merlin Reina Alston Mid Sussex Hoteliers Association Ben Underwood Millennium Hotels & Resorts Lohan Presencer Ministry of Sound Phil Urban Mitchells & Butlers Phil Whitehead Molson Coors Ken McMeikan Moto Hospitality Matt Butler Moviescape Ltd Ranjit Mathrani MW Eat Ltd Sarah Harrison Newcastle Gateshead Marriott Hotel Metrocentre
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