Business leaders in Warwickshire welcome a £30 billion package from the Chancellor to bolster jobs – but warn that they will need quick and easy access to support

Business leaders in Coventry and Warwickshire say firms across the city and the county will welcome a £30 billion package from the Chancellor to bolster jobs – but will need quick and

easy access to support if the measures are to have the desired impact.

The Chancellor, Rishi Sunak, announced a range of measures which he described as a ‘plan for jobs’ to counter the economic fall-out of the Coronavirus crisis that has led to a 25 per

cent drop in GDP in just two months.

He said he would ‘never accept unemployment as an unavoidable outcome’ as he outlined plans for the new Kickstart Scheme, where employers will be paid to create new jobs for 16-

to 24-year-olds at risk of long-term unemployment with grants of up to £6,500 per person.

The Chancellor announced a £1,000 bonus for businesses bringing back furloughed staff and keeping them in employment until January.

Further support is being made available for employers to take on trainees and apprentices while increasing the number of careers advisers and work coaches.

In the tourism and hospitality sector, the Chancellor cut VAT to five per cent on goods and services and also announced a new ‘Eat Out to Help Out’ policy that will allow the public to

claim a 50 per cent reduction up to £10 per head on sit down meals between Mondays and Wednesday’s at participating venues.

There was also an increase in the stamp duty threshold on house purchases to £500,000 until March, while the Chancellor announced investment in green jobs and reaffirmed a

commitment to infrastructure spending.

Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, said: “This was a very bold speech from the Chancellor with another massive amount of

money being offered to support the economy and, in this instance particularly, with a real emphasis on jobs.

“The measures from Government over recent months have been very much about survival - keeping businesses going and helping to keep employees in work, even when the economy

was grinding to a halt.

“This speech was a real shift from the Chancellor in trying to get the economy restarted and getting people back to work.

“There was a lot of support announced around trainees, apprentices, the Kickstart Scheme and also the bonus for bringing people back into work after they have been furloughed.

Companies will want to better understand how each of those measures can actually work in practice for them, how to access the help and how quickly and easily they can do it.

“When it comes to leisure, hospitality and tourism, we have been calling for additional support for this sector for many months and the cut in VAT and the ‘eat out’ incentive will

be welcome.

“Whether it’s enough to really get the sector moving again as it starts to return to business remains to be seen and there is no doubt that longer term support will be required.”

Alex Clayton, owner of Spanish restaurant Tasca Dali, in Warwick, said: “I welcome this announcement today.

"For years I have always maintained that VAT for hospitality does not make sense. Food does not have VAT at purchase, and many premises do not charge VAT on the lease. So there is no offset.

"Five per cent is a massive help for our cash flow but I would like to see it stay at that for the reasons I outlined.”

Helen Peters, chief executive for Shakespeare’s England, the Destination Management Organisation for South Warwickshire, said the announcement made by the Chancellor of the

Exchequer about the voucher scheme and a VAT reduction would provide further peace of mind to hospitality and tourism businesses.

“The past three months have proven to be desperate times for the hospitality and tourism sectors,” she said.

“Some have opened their doors once again but trade will not suddenly return to pre-Covid-19 levels, while others are still closed as they try to navigate this pandemic.

“So we still have a long way to go to make sure that businesses are back on track, but the measures that have been announced by the Chancellor of the Exchequer are another

positive step forward to aid them to get back on their feet again.

“The VAT reduction will provide an immediate stimulus and help with the financial viability of businesses over the coming months.

“It is also good news that the Government has come up with additional ways to help encourage people to visit restaurants, cafes and pubs especially during the quieter weekday periods.

“This is exactly the kind of support that they need at the moment and working along side the industries We’re Good to Go, accreditation mark and Shakespeare’s England’s

#discoveryourdoorstep campaign, will help boost confidence amongst the public and drive guests back into our hospitality businesses.

“This has been a devastating time for local hospitality and tourism businesses, but now is the time to support them.”