Statement on the Government’s Winter Economy Plan

Léonie Cooper AM, Chair of the London Assembly Economy meeting said,

“It’s clear that businesses have another difficult period ahead of them, particularly the cultural and creative industries where over 900,000 Londoners are employed. The London Assembly is calling on the Government to establish an enhanced furlough package for the cultural and creative industries. This is desperately needed to keep London’s theatres, museums, music venues and others from being further hit in what already has been an extremely difficult year.

“In addition, hospitality and tourism operators will be hard hit by the measures announced by the Prime Minister this week, in particular the 10pm curfew, which will have a long-term impact on London’s night-time economy. The Government is right to take action that protects the nation’s health. But before COVID-19, the night-time economy was the fifth largest industry in the UK, and something must be done to protect it.

“Today, the Chancellor must recognise and support those businesses who have been hit the hardest. Support for businesses should not just be focused on recovery, there is still a long way to go before society is free of COVID-19. The Chancellor must create support packages that will help keep as many businesses open as possible over the next few months as we continue to live through an extremely difficult time for us all.”

The London Assembly Economy Committee wrote to the Chancellor recommending 7 things he should do to support businesses across London:

Review the current range of business support measures

1. The Government should urgently review and raise the threshold for the Retail, Hospitality, and Leisure Grants Scheme for businesses in London.
2. The Government should immediately require banks involved in Government backed loan and grant schemes to provide in-person support to SMEs that require it.
3. The Government should review its plans to end the Coronavirus Job Retention Scheme, with a view to extend it beyond October 2020 in certain sectors, and base tapering of the scheme on the performance of the economy.

Support the hospitality and tourism sectors’ recovery

4. The Government should review the introduction of business taxes for hospitality and tourism operators with a view to giving businesses the best chance of success.
5. The Government should review its guidance for hospitality venues, with a view to strengthening social distancing provisions.

Help the cultural and creative industries rebuild

6. The Government should include the cultural and creative industries in the Government’s COVID-19 recovery plan.
7. The Government should establish an enhanced furlough package for the cultural and creative industries, reflecting the long-term challenges they face and the nature of their business models.