UK Government Financial Support - Win, Draw or Lose?
By Alex Prose · Dec 23, 2021
On 21 December, the government announced a range of support measures for the hospitality sector decimated by the recent Omicron Covid-19 variant.
What does this mean?
Venues will be entitled to a one-off grant of up to GBP6,000, giving over 200,000 businesses access to relief
Statutory sick-pay rebates have been reintroduced - which means that businesses with less than 250 employees can claim for employee sick-pay caused by Covid-19
An additional GBP30 million has been made available to help museums and theatres
Considering that December is a pivotal time for business - with some taking up 30% of their annual earnings during this period, we believe these steps will be hugely beneficial.
However, we do foresee a few challenges for businesses like (the imaginary) “Shining Haystack” pub, run by Brenda and Brian:
The one-off grant is up to GBP6000 and calculated by business rates. So non-occupancy venues are more likely to achieve the total grant. Nevertheless, local pubs like the Shining Haystack - where Brenda and Brian live upstairs - probably won’t reach the maximum allowance.
The next rent quarter is due in December. Brenda and Brian need to pay the quarterly rent for occupancy of the “Shining Haystack,” - but the government hasn’t offered them any support.
On 1 April 2022, discounted business and VAT rates are due to return to “normal” levels. The crockery and plates at the Shining Haystack look a little chipped, the Borsetshire taxman is frantically prodding his business rates calculator, and Brenda needs to re-order a carpet because Melvin the dog had a (widespread) disagreement with the Ploughman’s lunch. Again - the government hasn’t explained how it will support businesses with these day-to-day issues.
‘What has the government said so far?’
Hospitality businesses have increased their cash deposits (i.e., buffers) by 40% since pre-pandemic times - they now sit on a GBP7 billion buffer
Insolvencies are 25% lower in hospitality now than compared to pre-pandemic times
So, it seems the government is saying: “Brian and Brenda, you’ve had plenty of time to adjust your finances and save some surplus for rainy days such as these. While we’ll happily give you some temporary support, we expect you to find your ways of covering costs and building a buffer for future use”.
That is where the power of gigl comes in - we are here to cooperate with businesses such as the Shining Haystack and the government in ways that will allow both sectors to prosper in the long term.
How can gigl help?
Although we can’t cover business rates or sick pay, we can connect unique businesses with passionate people - through our 60-second video job platform. We interact with engaged job seekers daily and would love to help your business grow by hiring exceedingly great individuals through the gigl app.
So, are you ready to begin your journey with gigl?