Trade association beam is calling for Rishi Sunak to recognise the sector's unique cash flow situation in his spring budget statement.
Treasurer Simon Richards says that the sector needs greater flexibility and understanding from HMRC about payments.
Simon Richards“With many organisations in the business events, accommodation and meetings sector still seriously struggling with cash flow, ahead of the Chancellor’s Spring Budget statement beam is calling for greater flexibility and understanding from HMRC about payments,” said Richards, treasurer of beam and managing director of Convenus.
“The Government needs to recognise that, although they have bookings for events in the near future, many businesses in the sector still have significant cost liabilities but very little income - and they won’t be paid until those events have taken place. On top of this, they are now repaying bounceback loans and about to pay higher NI and VAT. The rising costs of fuel and food are also challenging.
“We need recognition that the cash flow of our industry is unique and, without this recognition from HMRC, recruitment and recovery will not start for many months to come.”
The call comes amid growing concerns about cash flow in the sector. Caroline Lumgair Wiseman, MD of Eventful, recently wrote a piece for M&IT asking if the commission-based venue finding business model - where agents are paid for their services after the event has taken place - remains fit for purpose.
“Many corporate clients have acknowledged the considerable value of working in close partnership with a venue finding agency,” she says. “This has been particularly true through the pandemic, with many agencies working tirelessly to protect their clients’ interests, negotiating preferable postponement and cancellation terms on their behalf.
“However, the pandemic and its effect on the travel and events industry has seen many businesses brought to their knees, with the short and long term implications necessitating an examination of current business practice.”
In January, ACC Liverpool announced it was supporting the conference industry’s recovery by pledging to pay commission upfront to agencies placing new corporate business with them. However, this pledge is still an outlier in the sector, with most venues still paying commission after the event has taken place.
You can read more about the venue finding business model in the upcoming May issue of M&IT.
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.
