UKH says furlough extension brings boost but broader support still needed

UKHospitality has welcomed the announcement that the furlough scheme will be extended until the end of March but warned that a broader package of support will still be needed to ensure businesses survive the next six months.

Kate Nicholls, CEO, UK Hospitality said, “Extending the furlough scheme is a big boost and will help secure hospitality jobs in the medium term across the whole of the UK. Keeping jobs alive during this lockdown and throughout a bleak-looking winter period, which is likely to see businesses trading under severe restrictions, is key to the future survival of the sector.

“Hospitality is facing a tough winter ahead, though, and businesses will need additional support if they are to survive. We will need enhanced grant support to keep venues alive and a solution to the ongoing rent debt problem that continues to linger over the sector. These must come alongside a clear roadmap for a return to business. Without these, the extended furlough scheme alone is not enough to keep hospitality alive and will have been a wasted investment of public funds.

“Surviving the winter is just the first step, too. Beyond that we need action to ensure that businesses can be revived and the sector can play its part in rebuilding the economy. Extending the VAT cut and business rates holiday, coupled with extensive Government promotion of tourism and hospitality, will be the bare minimum required.”