CH1ChesterBID is calling on the Government to raise the minimum threshold from £51k to £150k to help businesses survive through COVID-19.
These are unprecedented times for our economy at a local, regional and national level. Industry leaders, political figures and Business Improvement Districts (BIDs) are calling on the Government to support businesses within the retail, hospitality and leisure sectors who have a rateable value of more than £51,000.
CH1ChesterBID is backing the #RaiseTheBar campaign asking Central Government to expand the rateable value threshold for all retail, hospitality and leisure businesses from £51,000 to any business with a rateable value up to and including £150,000, allowing businesses the opportunity to access the £25,000 grant in order to survive. This campaign is supported by industry wide bodies that represent over 100,000 businesses across the UK.
Carl Critchlow, Manager of CH1ChesterBID said:
“Across the UK, there are concerns and uncertainties surrounding the economy and the effect that COVID-19 will have on businesses. By raising the bar to £150,000 rateable value, businesses and jobs across the Retail, Leisure and Hospitality industries can be saved. These industries are critical to the thriving economy not only in Chester but across the UK. Raising the threshold for this support has the potential to benefit 130 BID Member businesses in Chester city centre alone.”
The retail industry alone generated £394 billion worth of sales in 2019 with 306,655 units across the UK. In 2019, the UK leisure sector reached over £111 billion in sales. The UK hospitality employs over 3.2 million people, that is 11% of UK jobs, making it the third-largest sector in the UK, accounting for £130 billion in revenue, 6% of all businesses and 5% GDP.
Whether these businesses are independent or operating from more than one location feedback from those with a rateable value of £51,000 suggests that they are carrying significant stock losses and are still facing immediate cash flow challenges that wage subsidies will not address. Many are not in a position to take on further debt or have serious misgivings about being able to survive the recovery and service loans.
To date, 80% of our businesses have been excluded from government loan support schemes due to their size or European Union State Aid rules. These are some of our most adaptable businesses and the economy will need them to stave off the threat of cessation so that they can play their role in rejuvenating the economy and contributing to community wellbeing.
#RaiseTheBar is a collective national campaign led by Croydon BID, supported by the BID Foundation and BIDs across the UK.
Matthew Sims, Chief Executive of Croydon BID said:
“We acknowledge that by increasing the RHLG threshold up to and including £150,000 will increase the burden on central and local government. This is a price we believe is worth paying to ensure businesses are given the opportunity to become part of the greater push to mobilise our economy, rather than leaving premises empty, growing unemployment with or without the job retention scheme and sectors contracting across the board”.
Bill Addy, Chief Executive of Liverpool BID and Chair of the BID Foundation said:
“We cannot underestimate the importance of our Retail, Hospitality and Leisure sectors and not just to what they bring to our economy but the people that are employed within them. That is why the Business Improvement Districts across the UK are supporting the #RaiseTheBar Campaign in asking the Government to increase the Retail, Hospitality and Leisure rateable value threshold from £51k to £150k. In doing so, more business will have access to a £25k grant supporting their fight to survive and to allow them to play their central role in kick-starting our economy.”
It is important that the grant scheme is reasonably extended as critically, this will help thousands of businesses to adapt to the challenges ahead. This campaign will offer the single biggest difference in the personal commercial fight against this crisis.
This is a collective campaign designed to support the people that work for and run businesses in the retail, hospitality and leisure sectors. Across the UK, there are individual, personal concerns and uncertainties surrounding the economy and the effect that COVID-19 will have on them. In amending the rateable value from £51,000 to £150,000, we not only save businesses, but we also save jobs.
To support the campaign individually whether you work in the sectors or not, you can visit www.raisethebarcampaign.co.uk, sign up to make a positive change and sign the Government petition.