Hospitality, retail and leisure companies face heavy debt as the economy reopens. Industry authorities told the slotxo government.Hospitality UK's head, Kate Nicholls, warns of "long-term Covid for the economy. If you are not very careful"In talking to the selection committee of the Ministry of Finance Other trade entities It said government support was insufficient during the pandemic.Ms Nicholls told MPs the industry owes £2.5 billion in rent.She added that the services sector is coming out of lockdown with another 6 billion pounds of government debt accumulated through programs such as the Coronavirus Business Loan Disruption Scheme (CBILS).While the government's measures are very useful in terms of setting the framework for government-backed debt relief. We didn't see the bank being interpreted implicitly.
rent debt
Ms Nicholls told the committee that "We have £2.5bn of historic rent debt, which is currently due for a single payment on July 1, when the moratorium ends. Therefore, we urgently need to extend the moratorium.She added that a fifth of her members were saying there would be bankruptcy and the site closure if the issue wasn't resolved.The commercial rent moratorium - a temporary ban on eviction - was introduced in March 2020, but ends June 30.She told MPs it was of particular concern for multisite businesses: "If you have 50 sites in your hospitality business, You may have 50 different homeowners. And there must be only one homeowner who is stubborn and does not accept or negotiate, and that may be enough to cause bankruptcy across the land.also expressed concern about the next step of reopening the economy.
Step 4 of the government's plan to lift the lockdown on June 21 removes all legal restrictions on social connections. Reopening of nightclubs is allowed. and remove restrictions on large-scale events and shows Ms Nicholls said today's uncertainty has not helped the industry and its financial recovery.Although we have uncertain restrictions on June 21, we cannot lift those moratoriums without facing serious consequences for those businesses,” she added.She added that there was strong demand among consumers as restrictions eased, but most firms were still at a loss due to capacity constraints.Helen Dickinson, chief executive of the British Retail Consortium (BRC), told MPs that rent debt was also a problem for her sector.The historic rent protection, she said, must be preserved. To give landlords and tenants time to negotiate in the next few months.
The end of June is our duty very soon, so the decision needs to be communicated as soon as possible,We're losing about 5,000 stores during 2020, whether we're losing more stores than we need to. will depend on the decision to postpone the rental And what will happen to the business rate review?”Ms Dickinson told the board that entry into the retail space was still down 30 percent from where it was in pre-epidemic period.Mark Tanzer, chief executive of Abta, a tourism trade organization It told the committee that travel companies were looking for a "complete step change" in the government's attitude towards the industry.Summer accounts for two-thirds of the tourism industry. And we are in right now and no one travels,He stressed that a small number of countries are on the British government's green list. This does not require passengers to be quarantined upon arrival, meaning "our members have no income"What's worse is that They have to pay the money back and make a new booking,” Tanzer told MPs.Like Hospitality UK and the BRC,
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