24th September 2020The Chancellor’s Winter Support Package – initial reactions from HW Fisher

Commenting on the announcements made by The Chancellor on a winter support package today, Simon Michaels, CEO of HW Fisher Business Solutions said:

“It’s a serious time for British business. We’re six months into lockdown and businesses are feeling prolonged economic pain. The new jobs support scheme outlined is a positive step, but 6 months is not enough – a clear strategy is needed beyond March.  Changing the terms of loans will be an immediate relief for businesses, but it remains a short term fix.

The Government must now focus on building a stronger long term view. Furlough cannot last forever, and neither will CBILS. In reality, we have 2.5 months left of business this year and more questions than answers remain.  The Chancellor might not be able to save all businesses – but he can save more.”

Russell Nathan, Senior Partner and Head of Hospitality, shares his thoughts on the outlook for the hospitality industry:

“The new job support scheme and the extension of the VAT cut from August is of course welcome for the hospitality industry, but the bigger issue facing the industry is the tense relationship between tenants and landlords. Landlords may be owed unpaid rent due to lockdown closures, and tenants may be either refusing to pay or be unable to pay due to the resulting economic hardship. And with Christmas traditionally a very significant time for revenue in hospitality and January a quiet time, further and longer-term support needs to be put in place to prevent more businesses from closing.

The 10pm limit is a challenge, but I believe it will create changes in habits with lunch becoming more popular and people having earlier winter dinners, hopefully offsetting the reduction in opening hours.”