UKHospitality has made comment on the news that businesses that took out government-backed Bounce Back Loans will have greater flexibility in repayment.
CEO Kate Nicholls said, “This is a welcome announcement from the Chancellor as the greater flexibility offered in repayment options will give valuable breathing space for many hospitality businesses.
'The overwhelming majority are under huge pressure after months of little or no income, with cash fast running out and an ever-increasing debt pile as a result of prolonged periods of closure.'
Nicholls continued, 'Whilst this does provide relative respite for some, it’s important that banks are as flexible as possible in allowing hospitality businesses to access better terms and follow through with this announcement. Government has a role to play if this is not seen to be taking place.
“The survival of thousands of businesses and the ability of the hospitality sector to play a full part in the nation’s economic recovery hangs in the balance.'
Nicholls ended, 'What’s urgently required is a clear roadmap to reopening, a solution to the ongoing rent debt issue that continues to cast a huge shadow over the sector, along with an extension of the business rates holiday and VAT cut.
'These measures will help give hospitality a fighting chance to get through this crisis, to grow and create jobs once again.”