A 12 month business rates holiday and loans are also among the measures announced:
Government support for Covid -19 affected businesses- “I’m glad the Government have understood the economic emergency the hospitality sector is facing. The cash grant of 25k is helpful, but doesn’t go far enough, especially if this period lasts longer,” he said.
“Businesses need grants across the board, not repayable loans.
“Insurance claims are only available for businesses who have policies detailing pandemic insurance. Isn’t it time insurers play their part? Still huge uncertainty for zero hour contracts and freelancers. A start, but we need more help.
“As a final point, we are one of the only countries in the world, that hasn’t set a timescale. Most are saying end of April, which helps create more certainty and stability.
“Lastly, a significant amount of people who work within the night time economy, rent. They don’t have mortgages. A holiday break on mortgages won’t help them in the slightest. Again, a start, but the Government need to go a lot further.”
Kate Nichols, chief executive of UKHospitality, said the measures were a ‘huge breathing space’ for the industry.
She said Mr Sunak was ‘really delivering for hundreds of thousands of businesses who were last night in despair’.
“This is a huge breathing space to allow businesses to focus on their teams and the promise of more to come if needed,” she tweeted.
“We may still need to encourage landlords to play their part and the £25k grant would help if extended to smaller businesses operating from larger premises to get them over the challenge of quarter rent day in 9 days. That’s the timetable and focus now.”
The Campaign for Real Ale said the measures still do not go far enough to ensure pubs, clubs and breweries do not go out of business as a result of the crisis.
Government support for Covid -19 affected businesses
National chairman Nik Antona said: “While a business rate holiday for all hospitality businesses and rate relief for eligible pubs will help alleviate some costs, this will do little to compensate for the potential collapse of cashflow in businesses which customers have been told to stay away from.
“Making loans to businesses with no money coming in and multiple overheads to meet through a period of no, or low trading, is simply kicking the can down the road.
“We would urge additional measures to cover all liabilities, however long the restrictions on pubs, to ensure these vital businesses can emerge unsaddled by debt and able to deliver the many benefits to the communities they serve.”
Mr Sunak’s assurances come after the Association of British Insurers warned today that the vast majority of businesses will not have purchased cover that extends to closures as a result of coronavirus.
A spokesperson said: “Standard business interruption cover – the type the majority of businesses purchase – does not include forced closure by authorities as it is intended to respond to physical damage at the property which results in the business being unable to continue to trade.
“A small minority of typically larger firms might have purchased an extension to their cover for closure due to any infectious disease. In this instance an enforced closure could help them make the claim, but this will depend on the precise nature of the cover they have purchase:
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