Chancellor Rishi Sunak has extended the furlough scheme until September in his spring budget.
But event professionals have reacted with dismay to the chancellor's plans, citing a lack of sector-specific support.
Simon Richards, treasurer of HBAA and managing partner of Convenus, said: “The meetings, events and accommodation sector urgently needs extra, specific financial support but once more the Chancellor has chosen to ignore the sector in today’s Budget.
“There was £700m for arts and sporting institutions; £5bn in grants for shops, hospitality and leisure businesses - business-to-consumer sectors. Yet there was no mention of support for meetings, events and accommodation agencies or venues anywhere - the business-to-business sectors which have faced all the same issues of having to survive without any income until lockdown eases - and will do so for some months longer as the lead time for events is much longer. Meetings and events businesses ought to be included in the £5bn Retail, Hospitality and Leisure Grants. We will be seeking clarification on this – and explanation if they are not.”
The Business Visits & Events Partnership (BVEP), welcomed the additional business support but said it remained 'cautious' until the finer details of the support pledges are announced, as it is still unclear how much support event businesses will receive.
In a statement it said: "The Chancellor has responded to the Partnership’s ask for extensions to current business support. However, there’s a need to look more closely at the extent of these and other measures in so far as they apply to the Events Industry, including the additional funds allocated for the Cultural Recovery Fund.
"The reopening roadmap does not mean an instant recovery for the industry. As has been constantly emphasised events take months to plan and many will not return until well into the back end of 2021 and many more until 2022. On this basis, event businesses will need more support than many other sectors of the economy which can open reasonably immediately when permitted to do so," the BVEP statement added.
In his second budget as Chancellor, Sunak revealed that conditions of the furlough scheme will not change until July when employers will be asked to contribute 10 per cent of the 80 per cent of wages the government currently covers. This will increase to 20 per cent in August and September, before closing on 30 September.
Sunak also confirmed that the business rates holiday will be extended until the end of June.
"For the remaining nine months of the year, business rates will still be discounted by two thirds, up to a value of £2m for closed businesses, with a lower cap for those who have been able to stay open," he said.
On VAT, he also confirmed the 5 per cent reduced rate of VAT will be extended for six months to 30 September followed by an interim rate of 12.5 per cent for another six months. The standard rate will not return until April next year.
The Office for Budget Responsibility expects the economy to return to pre-pandemic levels by the middle of 2022, six months earlier than it predicted in November 2020. But it also forecasts that over the next five years the economy will be three per cent smaller than it was predicted to be.
The budget also included extended support for the self-employed with 600,000 more self-employed people eligible to apply for grants. They are now eligible for support as the tax return deadline for the last fiscal year has closed.
This support will be offered in a fourth grant that will cover February to April, worth 80 per cent of average trading profits up to £7,500. A fifth grant will be available from July.
The budget also announced the prospect of new intellectual capitals including setting up a UK Infrastructure Bank in Leeds and the creation of free ports around the country in East Midlands Airport, Liverpool, Felixstowe, Humber, Plymouth, Thames, Teesside, and Solent, which are predicted to bring investment.
A desire to travel led Holly Patrick to the business meetings and events world and she’s never looked back. Holly takes a particular interest in event sustainability and creating a diverse and inclusive industry. When she’s not working, she can be found rolling skating along Brighton seafront listening to an eclectic playlist, featuring the likes of Patti Smith, Sean Paul, and Arooj Aftab.
