East Midlands Chamber calls for business financial support as Omicron restrictions begin

The Chief Executive of the East Midlands Chamber has commented on the introduction of new Covid-19 restrictions, including Government guidance to work from home where possible.

Scott Knowles said: “With the return of measures introduced to protect the country from the Omicron variant, we expect the Government to now step up and offer financial support to businesses affected by new restrictions.

“Adding a greater burden to many businesses, particularly those in sectors such as events and hospitality, comes with a cost that will weigh heavily on them at a time when they are desperately trying to claw back earnings lost during last year’s Christmas period. 

“The mandate to work from home comes at a particularly bad time as many city centre businesses will have been looking forward to welcoming office workers in the build-up to Christmas.

“We would have hoped to have been presented with a Treasury plan for business support in the case of Plan B measures being required in advance of their introduction. 

“This didn’t happen, so it’s now imperative it acts quickly to mitigate the damage these restrictions could cause across each sector by once again reducing the VAT rate for hospitality and leisure sector, reinstating business rates relief for bricks and mortar retail, making additional grant funding available for firms and keeping interest rates on hold at 0.1%.

“Our own assessment is that while these restrictions may be more moderate in comparison to previous measures, their impact will still place a downward pressure on consumer confidence and hits businesses at the worst possible time, particularly those in hospitality, many of whom rely on the final weeks before Christmas to make a significant proportion of their annual income. 

“When we add in how concerns over the Omicron variant could lead to a reluctance to socialise and spend in the New Year, the slowdown in economic growth we’ve seen recently – every East Midlands economic indicator was down between Q3 and Q4 2021 in the Chamber’s latest Quarterly Economic Survey – will likely continue.

“We welcome the Government’s move to turbo-charge the booster vaccine rollout but it’s vital too that businesses are provided with certainty to make them feel confident in the future, encouraging them to invest, grow and recruit.”