‘Woefully inadequate’: Bristol hospitality firms slam Rishi Sunak’s £1bn bailout package

Bristol hospitality firms struggling to cope with cancellations, a drop in bookings and staff shortages as Omicron cases soar in the city have branded Rishi Sunak’s £1bn bailout package as ‘woefully inadequate’.

Businesses will be able to claim a one-off cash grant of £6,000 under the scheme, the chancellor said as he announced the financial boost yesterday (Tuesday, December 21).

Mr Sunak said the support was ‘generous’ during a ‘difficult’ situation for restaurants, pubs and hotels.

An open letter to the government from businesses chiefs such as the Bristol City Centre Business Improvement District and Visit Bristol this week called for urgent action, warning that ‘strong local businesses’ were ‘collapsing’ after seeing bookings plummet by 45-70 per cent.

But Bristol businesses say £1bn is ‘not enough’ to sustain them when the sector already brings in £113bn per year.

As the system is based on business rates, concerns have also been raised that only bigger chains will benefit from the top end of support while Bristol’s many small independent firms will lose out.

Paul Kemp, who owners Beerd Craft Beer and Pizza on St Michael’s Hill, said: “Its not enough, and it’s £6,000 only to businesses rated more than £51,000. Most businesses will get less.

“Sick pay isn’t enough, it should be the equivalent of previous furlough level.

“We need a permanent VAT rate for hospitality that includes alcohol.

“Cash flow is a problem with quarterly rent due along with VAT payments.”

Jan Wilson, who owns small independent bistro Wilsons in Redand, was forced to shut up shop a week early after a number of staff tested positive for coronavirus.

The restaurant sold off its surplus ingredients to customers before closing its doors, giving all the proceeds to charity.

Jan told BristolWorld that while the was a ‘kind gesture’, the amount being offered was still ‘woefully inadequate’.

They added: “It highlights the government’s lack of understanding of how this key part of our economy works.”

Carly Heath, Bristol’s night time economy advisor, branded the £6,000 grants a ‘drop in the ocean’ for businesses when ‘the sector brings in £113bn a year’.

Ms Heath also slammed the fact the bailout package mentions no support of any sort for freelancers, no reduction in VAT or rates and no extension to events insurance.