The HBAA has tentatively welcomed chancellor Rishi Sunak’s latest changes to the furlough scheme – but warned that the events sector needs further concessions to avoid a “deluge of redundancies”.
The chancellor confirmed that the furlough scheme will finish at the end of October, with employers sharing the cost of the scheme from August. Employers must pay National Insurance and pension contributions from August, then 10 per cent of pay from September, rising to 20 per cent of pay in October. Workers will be allowed to return to work part-time from July, but with companies paying 100 per cent of wages.
Lex Butler, chair of the HBAA, said: “We’re encouraged by the Chancellor’s latest changes to the furlough scheme but business events, accommodation and meetings businesses still need special treatment to prevent a deluge of redundancies”
“We’re very pleased that, contrary to many national press reports, the employers’ contribution will start at National Insurance and increase gradually. However the sector has been closed for business since the start of the lockdown in March and will be the last to recover. By the end of the furlough scheme business events will only be just starting again, with smaller meetings.
“All of our members have had no income over the last few months and agencies will be in a very tough place with no prospect of income for eight to 12 weeks once business starts moving again. Hotels and venues, many of which have been closed or operating at a loss to provide rooms for essential workers since lockdown, will also struggle to contribute to a scheme that has been a lifeline for business.
“If no concessions are made to businesses in our industry on the proposed contributions, the deluge of redundancies will be inevitable.”
HBAA, the trade association for the hotel booking agency, apartment and venue community, has more than 300-member organisations including more than 80 agency and 225 venue members that work collaboratively in the accommodation, meetings and events sector.
M&IT editor Paul Harvey is a journalist with more than 15 years of experience. He began his career in the local press, working for various titles across the north. Since joining M&IT in 2013, he has become a trusted and respected voice in the sector, championing event professionals and reporting on all aspects of the events industry for the brand.
