Chancellor Rishi Sunak has expanded the furlough replacement scheme and introduced more favourable grants for the self-employed.
Sunak's intervention has been welcomed by the Meetings Industry Association, who called it "a step in the right direction". However, event tech consultant Shirley Craven of the ForgottenLtd campaign said that the support for small limited companies was not significant.
The expansion of the Job Support Scheme (JSS), which replaces the furlough scheme on 1 November, will see the government pay a larger share of workers’ wages to protect companies struggling with restrictions.
There will be a new grant scheme worth a maximum of £2,100 per month for firms under Tier 2 and 3 restrictions and a cut to the level of employer contributions companies must make to receive payments for workers on the JSS. Sunak cut the level to 5 per cent of a workers’ usual wage, down from a previous level of one third.
Sunak also increased the maximum grant covered by the self-employed grant schemes from £1,875 to £3,750.
The chief executive of the mia, Jane Longhurst, said: “Today’s announcement from Rishi Sunak will be welcome news for many venues and organisations within the business meetings and events supply chain, who will have rightly felt heavily neglected up until this point.”
“When the Job Support Scheme was originally announced last month, we, alongside many within the industry, expressed concerns surrounding the deceptive ‘benefits’ of the scheme, so we are pleased that these updated terms will see the employer contribution towards unworked hours being reduced to protect companies struggling with the COVID-19 restrictions.
“While the industry continues to be forced to operate at unsustainable levels, the increased subsidisation from government will go a long way in providing protection for thousands of jobs within our industry while staffing levels continue to remain at a severely reduced level.
“The introduction of cash grant support is a step in the right direction. However, the maximum £2,100 monthly payment, available primarily to businesses which are impacted by the restrictions in tiers 2 and 3, won’t scrape the surface of the operational costs for many within our industry. Our research has demonstrated that these costs that go beyond labour, average more than £85,000 per month.
“While restrictions on revenue generation continue to be enforced, much more still needs to be done for venues in all tiers to safeguard our industry from collapse."
Event tech consultant Shirley Craven said: "If there is anything for small limited companies, it’s not a significant amount of support. After seven months without any meaningful support, how are businesses expected to survive?"
"There are two million small limited companies in the UK - employing 7.5 million people. Many, many of these companies are in the event industry, or are sector suppliers. The Chancellor is looking to protect jobs - how about making sure we keep the existing ones first?"
Writing on Twitter, Michael Hirst, chair of the Events Industry Board, said: “No recognition of the unique plight of the #events Industry in latest announcement by @BorisJohnson & @RishiSunak. What more proof is needed to save jobs & businesses in this world class industry to make sure it is intact when The UK needs to reassert itself on the global stage.”
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.
