Coronavirus: Hospitality chief pleads with PM to tackle 拢1.4bn rent bill
The UK Hospitality CEO has urged the PM to help the industry with its looming rent bill in a letter seen by Sky News.
Monday 8 June 2020 15:11, UK
The boss of Britain's biggest hospitality trade group has urged Boris Johnson to help the industry tackle a looming 拢1.4bn rent bill, even as the government prepares to allow an earlier-than-expected reopening of pubs and restaurants.
Sky News has seen a letter sent last week by Kate Nicholls, UK Hospitality's chief executive, in which she asks the prime minister to intervene to aid the survival of thousands of her members.
It is the latest request for support from an industry which has been left on its knees by the coronavirus pandemic.
Ms Nicholls' letter requests that the PM help to "address the issue of rent debt which has built up in the sector over a prolonged period of closure and which, if left unaddressed, will significantly impair recovery".
She said the deferral of rent for three months meant that £1.4bn of rent would be payable by the end of this month "unless it is further deferred and by the end of September, three quarters of the annual cost will be levied by landlords in one payment".
"This is simply unsustainable and will unless tackled will result in widespread business failure," she wrote.
The letter was sent prior to the publication of a report in the Financial Times which said that ministers were drawing up plans to reopen pubs and restaurants on June 22.
One hospitality executive said the government had not raised that date as a possibility during recent talks with the industry.
They added that while it would be welcome, an earlier reopening would not by itself offer hospitality businesses the support they required.
"The key thing is not just date but social distancing as if we are to open but it is still 2 metres then one in five say they cannot reopen, and it will reduce revenue to 30pc of normal levels, meaning they are not viable," the executive said.
"So unless the reopening comes with either a package of support on rent to fund sub-economic reopening or it comes with changes on social distancing it could have little impact."