Sadiq Khan criticises UK government's support package for venues: "It will hardly touch the sides"

Yesterday (21 December), Chancellor Rishi Sunak announced a £1 billion fund to help businesses in the hospitality (pubs/restaurants) and leisure sector amid the current COVID situation, which has seen a rise in cancelled events due to the ongoing spread of the Omicron variant.

According to BBC, the Chancellor revealed that businesses will be able to apply for grants of up to £6,000, with the money expected to be distributed in the coming weeks.

The support package was criticised by Music Venue Trust yesterday (21 December). While they welcomed "any announcement from Treasury that recognises the very serious situation facing grassroots music venue," Music Venue Trust added that it's a "woefully inadequate response to the reality of the position."

Since the announcement, London Mayor Sadiq Khan has spoken out about the support package saying, "£6,000 per premises will hardly touch the sides."

The Government's support package is nowhere near enough to rescue London’s retail, hospitality and culture businesses. Not to mention the freelancers and gig economy workers who have been left out in the cold. Ministers must act now so more jobs are not lost for good. @ITVLondon pic.twitter.com/2PlAcNjdGG

— Mayor of London, Sadiq Khan (@MayorofLondon) December 21, 2021

In a statement posted to Twitter, the London Mayor added, "To put this in context, closing a West End show for a week can cost over £250,000 while a Night Time Industries Association (NTIA) members survey has indicated an average loss in takings of £46,000 per venue in the run-up to Christmas."

"The devastating truth is that a £6,000 grant to compensate for losses made in the golden quarter is a drop in the ocean and grants alone will not be enough to keep businesses afloat, especially if - as many expect – further restrictive measures are forthcoming," Khan continued in his statement. "These businesses have a genuine fear for their futures and it is essential for both business continuity and consumer confidence that Ministers provide clarity about whether restrictions will persist or are likely to be tightened further."

The Mayor of London also urged the UK government for a "comprehensive package of measures which provide full business rates relief, extension of the VAT relief scheme, and a substantial increase in direct grant funding to support hospitality, night time and cultural venues who were counting on a rise in income over the Christmas period to help see them through the lean winter months."

"The Chancellor has said nothing on support for freelancers and gig economy workers, or of the targeted reintroduction of the furlough scheme to protect those workers who will see their incomes plummet," he added. "Ministers must act now to ensure that more jobs are not permanently lost."

£250,000. That’s how much it costs to close a West End show—for one week.

While any Government support for our beleaguered retail, hospitality, nightlife and cultural sectors is welcome, grants of £6,000 won’t touch the sides.

My full statement: pic.twitter.com/5UVNBp2ArD

— Mayor of London, Sadiq Khan (@MayorofLondon) December 21, 2021