As the coronavirus crisis deepened the Prime Minister on Monday warned people to stay away from ‘pubs, clubs and restaurants’, a move that could devastate the hospitality sector. Tony McDonough reports

 

Liverpool city region business leaders are calling for a COBRA-style body to be set up in Merseyside as businesses look set to lose millions of pounds due to the coronavirus.

LBN understands that hotel bookings in the city have nosedived. One city centre hotel has lost more than £2m in bookings alone over the next few months with many non-essential retailers also set to close their doors. The postponing of the end of the football season was already set to bite hard and on Monday night, the Grand National was cancelled.

Late on Monday afternoon Prime Minister Boris Johnson introduced “draconian” new measures, advising people to isolate themselves and avoid “pubs, clubs and restaurants”. However, he stopped short of ordering their closure, possibly preventing businesses from claiming on insurance. The measures, set to last for weeks or months are likely to devastate the hospitality sector.

Now four Liverpool business leaders are calling on the Liverpool City Region Local Enterprise Partnership, the Liverpool City Region Combined Authority headed by Metro Mayor Steve Rotheram, and Liverpool City Council to join with business organisations from across the region to consider “urgent and coordinated action”.

One of the four – Downtown in Business chief executive Frank McKenna – said the temporary body would need to include representatives from the major banks who, he said, needed to make sure they offer their full support to stricken small businesses over the coming months.

 

The other three senior business people who have signed the joint statement are the head of the Business Improvement District and the chair of Liverpool Visitor Economy board Bill Addy, Phil McCabe of the Federation of Small Business and the chair of the Liverpool Hospitality Association Marcus Magee.

The statement reads: “We are asking the powers that be to try to get ahead of what is becoming a critical situation for many of our businesses. The key issues that business needs support, advice and help with are professional guidance around staffing issues, cash flow planning and recovery plan strategy.

“In particular, we would like to see direct and meaningful dialogue opened up with banks and financial institutions to monitor how they are implementing the business support measure announced in the budget last week at a local level; what plans local authorities may have around business rates; what flexibility there is to more effectively utilise the Combined Authority’s SIF funding; what can be done to support those sectors that are already in crisis in the hospitality and retail sectors?

 

“We appreciate that in terms of cash and resources the public sector is not in a position to be throwing money at this problem. Nonetheless, there is a need for us to pull together through a private and public sector partnership to ensure that we are doing the maximum possible to mitigate against the worst effects of a global crisis that could turn into a local catastrophe for many businesses.”

The business leaders have written to all other business groups from across the city region seeking their support and co-operation and they have contacted the city and city region mayors offices asking for an urgent meeting of those organisations, the Local Enterprise Partnership and representatives from the banks.

The statement calls for a powerful body of people who can begin to argue for even greater assistance from government. In particular:

• An urgent deferral of business rates and VAT payments for businesses, regardless of their size.
• Adaption of Universal Credit by contributing to wage payments for those whose services are not needed in the short-term to support retention of employees.
• A further cut to the rate of NICs for one-year.
• Allow businesses to use the apprenticeships levy cost to contribute towards salary costs rather than just training.
• Flexibility and less bureaucracy around local, regional and national access to finance and business support funding to help with cash flow.

It added: “We are sure that this list is not exhaustive and many of our colleagues will have their own ideas as to how we can get through this crisis. That is why we want to get a practical, action orientated group in place to give our business community the support it desperately needs as quickly as possible.”

A Liverpool City Council spokesperson said: “Supporting Liverpool’s business community through what is certain to be the most testing period in living memory is a priority. We are already in detailed discussions with the Local Enterprise Partnership, the Combined Authority and representatives of a wide range of sectors to discuss how best to respond and shield local firms during the challenging times ahead.

“In the very near future we will be saying more about how we will be supplementing and enhancing the support provided by central Government.” 

And Metro Mayor Steve Rotheram also said: “The Combined Authority is working together with organisations from across our city region – businesses, charities, local authorities and voluntary organisations – to help understand the needs of our communities and shape our response as the situation develops.

 

“We are closely monitoring the situation to ensure that our services are well-prepared and will provide updates as things change. I will continue to work with Merseyside Resilience Forum, which draws together partners from the emergency services, local councils, Public Health England and a host of other key organisations. I am also keen to work with colleagues in neighbouring Cheshire to ensure that there is an effective joined-up approach across our entire region.

“I will also be lobbying government to provide whatever support our public services tell us that they need to help manage things locally. Our region is famed for its community spirit, its kindness and generosity, and its collective solidarity. As we coordinate our response to COVID-19, those values will be needed.”