business

Business Response To New National Coronavirus Restrictions

Responding to new national restrictions for England to combat a rising number of Coronavirus cases announced by the Prime Minister today business organisations have responded: (22 September),

“There must now be a new plan to support businesses this autumn..."

Adam Marshall

BCC Director-General Adam Marshall said:

“Businesses understand that further restrictions are necessary to tackle the rising number of Coronavirus cases, but these measures will impact business and consumer confidence at a delicate time for the economy.

"Businesses, their employees and customers need to see a clear road map for the existing restrictions and those that may be introduced in the future. This must include transparent trigger points, and clarity about the support available to protect jobs and livelihoods.”

“The government should waste no time in setting out a comprehensive support package for firms forced to close or reduce capacity through no fault of their own.”

Dame Carolyn Fairbairn

The CBI's Director-General, Dame Carolyn Fairbairn, said:
“A second national lockdown would be devastating for our economy, so it’s right to prioritise bringing infections under control.

“But there can be no avoiding the crushing blow new measures bring for thousands of firms, particularly in city centres and for our hospitality sector employing over 4 million people. It is vital that all announcements of restrictions go hand in hand with clarity on the business support that protects jobs.

“A clear timetable is welcome, but six months will come as a shock to many. Every possible step should now be taken to bring that horizon forward. This requires a turbo charged testing regime to help control the virus quickly.”

On changes to return to workplace guidance, she said:

“Renewed advice to work from home where possible will keep our town and city centres under great economic pressure, just as people were starting to make their way back. While action is necessary, it comes at a serious price.

“Remote working has brought real benefits to people and businesses, but we also lose a lot from missed human connections in the workplace.

“Businesses have bent over backwards to make their workplaces COVID-secure and are ready to welcome staff back as soon as allowed.”

On 10pm closures for hospitality, she said:

“Our pubs, cafes and restaurants have had it hard throughout the crisis. Earlier closing times will be another bitter pill and it’s clear this sector will need more help over a longer period.”

On a business support plan for the autumn, she said:

“There must now be a new plan to support businesses this autumn. This should start with a successor to the Job Retention Scheme and allowing cash-strapped businesses to defer their VAT payments from the last quarter – a no-brainer given this latest blow to our economy.”

On a new national testing challenge, Carolyn said:

“Testing is currently our single biggest weapon against the virus. It’s time for a united national push to turbo charge testing capabilities.

“Firms stepped up when PPE and ventilators were in short supply. They are ready to do the same to accelerate testing capability. Private sector capacity matched with agile government procurement could be transformational.

“The prize is huge - fewer outbreaks, more people safely back in workplaces, and greater confidence across the economy, from our high streets to our airports.”

Frances O’Grady

Also responding to the Prime Minister’s announcement TUC General Secretary Frances O’Grady said: 

“With infections rising, the government must get a grip on test and trace and safety at work. Workers are still telling us that employers are not enforcing social distancing or providing PPE to keep them safe.

“Ministers must make it a legal requirement for companies to publish their risk assessments. If we don’t deal with the public health crisis, we won’t be able to deal with the economic one.”]

Highlighting the need for jobs support to continue, Frances O’Grady said:

“It’s clear that this pandemic will not be over by Christmas – so neither should state support for jobs.

“The PM says he will put his arms around the workforce. Let’s see him prove it.

“Warm words will not pay the bills or save livelihoods. The government must come forward with a new jobs protection and training deal that support short-time working to stop the disaster of mass unemployment.

“Ministers cannot watch from the side lines as good jobs go to the wall.”

Chris Sutton

New Covid-19 restrictions mean the furlough scheme must be extended for hospitality sector, says Chris Sutton, partner at MHA MacIntyre Hudson, as there is a risk all the hard work done to revive the hospitality sector will be undone:

“The new restrictions set to be implemented by the government are potentially devastating for the hospitality sector, particularly as we move into the colder months, restricting the use of outside spaces. The hospitality sector has worked very hard to get establishments open again, and the restricted opening hours, on top of the rule of six, are a real blow.

“The restrictions bring an added sting to the end of the furlough scheme. There will be a lot more job losses in the sector in the coming months. The advice to work from home where possible will leave city centres deserted again, just as we were starting to see some pickup in city centre trade from workers returning to the office.

“The new restrictions mean the sector urgently needs further support. The sector is going to need help for the period the new measures are in force in order to alleviate the cash flow pressure they will bring. Relief measures will then need to cover some further months to provide time for recovery. Options include an extension to the furlough scheme, continuing the VAT reduction announced in the July statement and potentially another round of Eat-Out-To-Help-Out. The extension of the furlough scheme followed by a rerun of the Eat-Out-To-Help-Out when conditions permit would be ideal.”