UKHospitality chief executive Kate Nicholls said: “We urgently need action from the government to...
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Well, I think it’s fair to say that Coranvirus has well and truly destroyed small businesses already and we are only in the first few weeks. I had a call from a friend the other day who had handed back his lease agreement as not only can he not pay his rent or staff, his future is so uncertain and he — along with many others — is worried about how long it will take to ‘get back to normal’. In the UK many landlords are offering moratoriums on rentals as they are aware that if losing a tenant then they will end up with an empty unit. Sadly the same approach is not being take in general by our host country.
In fact according to reports in the UK, the UK Hospitality has told the government, commercial landlords must be prevented from taking punitive legal actions against businesses suffering a loss of income during the coronavirus crisis,
In a letter to the Ministry of Housing, Communities and Local Government, the trade body called for an immediate extension of the forfeiture moratorium to six months and a widening of its scope to prevent broader debt enforcement measures, including winding-up orders, statutory demands and commercial rent arrears recovery.
Again sadly I am not seeing this sort of help from the Spanish government. The moratorium for the self employed on their autonomo payments is unlikely to have any effect. Friends of mine who tried have been told that as they owe social security (be it a month) they will not get anything.
In further help being offered in Britain, Chancellor Rishi Sunak has introduced a ‘Business interruption Loan Scheme’. (see below)
It’s not all plain sailing though as it is reported that between 800,000 and 1,000,000 business across the country could close due to delays receiving support.
Two weeks ago chancellor Rishi Sunak unveiled Coronavirus Business Interruption loans of up to £5m, but it is reported that many firms have either been refused loans, have not been able to get through on phone lines, or have been told the money would take weeks.
A jewellery shop owner in the UK who employs 40 people said that he was denied a loan as the business made a small loss in 2019, despite it looking likely to be profitable in 2020.
Peter Jackson said: "I thought the whole point of the loans was to help business like mine stay afloat. But they're not going to help."
Some two weeks ago, I commented on social media that I felt that this may carry on well into the summer and that bankruptcies and business closures would seriously affect people’s well being and that it’s likely to result in more suicides than may be killed by Covid19. I also said that we will see a recession far worse than 2008 and in fact nearer to the depression of 1920. The Financial Times today (4/4/20) concurred with me. I only hope we are both wrong.
Also a while ago I posted an idea that I thought might fly, suggesting that our industry could help the less fortunate at this time by preparing food for hospital staff and old house bound people. While my idea did not come to fruition from my side I am pleased to see that Marc Quinlan from the Harbour/Playwright in Marbella and Ian Radford’s La Sala Group have done exactly that. Now we just need supermarkets to give all the veg and stuff they may have to throw out to these guys to help them in their quest.
Dine well at home. If anyone wants any ideas, contact us.
Good Food, Good Wine and Good Friends and GOOD HEALTH!
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