Lucy Powell MP, Labour’s Shadow Minister for Business and Consumers, commenting on the warning from UK Auto that the Covid-19 crisis threatens 1 in 6 jobs in the sector, said:
“This warning from the automotive industry underlines the scale of the crisis facing British manufacturing. It’s clear that the government must act to safeguard our car industry and the hundreds of thousands of high paid high skilled jobs in communities that can ill afford to lose them.
“We are in danger of being overtaken by international competitors like France who have stepped in to support and sustain their car industries through this crisis. With the right action now, the UK could lead the world in a green revolution in automotive. No action will lead to devastation and long-term damage to communities who rely on these jobs. That’s why Labour is calling for a green recovery and a back to work budget focused on jobs, jobs, jobs.”
As retail businesses across the country begin to open, Labour is today (Monday 15 June) urging the government to give the hospitality sector the clarity it needs to safely reopen.
Lucy Powell MP, the shadow business and consumers minister, is warning that the sector faces collapse with a wave of closures and redundancies unless ministers ensure sector specific support is made available to businesses struggling through no fault of their own.
Labour is also encouraging the public to shop local and back small British business.
Ms Powell calls on the government to do whatever it takes to save businesses and protect jobs by making sure as many businesses as possible can reopen safely in a way which “maximises economic viability, whilst minimising the risk to the health of customers and staff”. The economic support for businesses needs to sit in tandem with their ability to trade. For hospitality this is going to take a lot longer than other sectors.
Figures this week show the scale of the economic cost of Covid-19, with the economy shrinking at the fastest pace on record in April. Hospitality and small retail have been particularly hard hit. Every previously viable business that goes bust will prolong and deepen the economic downturn we face. A long and deep recession is a far greater threat to our long-term public finances than the support which businesses need today to help them bounce back more quickly.
Small retail and hospitality businesses are the lifeblood of our high streets and at the very heart of our communities but the lack of support for some in the sector and a series of contradictory anonymous briefings have created confusion about re-opening for companies and the public alike.
Labour is calling on ministers to:
Stop anonymous speculative briefings on social distancing guidelines.Social distancing guidelines are vital information for venues to prepare to reopen safely in respect of layout of venue and capacity of venue, both of which impact on revenue and financial decision making. Businesses will require clarity and transparency. As with other aspects of Ministers’ response to the Covid-19 crisis anonymous speculative briefings to the press are deeply unhelpful, confusing business and the public with mixed messages. Any changes to the guidelines should be led by the science and come about through a transparent and clear process.
Give guidance on business-critical issues such as sanitising, PPE for staff, security provision, use of toilets, the use of phone apps for ordering, vertical drinking and table service. Without this information, many business operators are struggling to plan their opening and short-term business model.
Set out what help will be available for operators who have to remain closed because the 2m rule prohibits them from being able to open safely and/or it is not financially viable for them to do so.
Ensure furlough flexibility. Business wants clarity around the part time furlough scheme and whether this can be brought forward. If outdoor areas are open from 22 June, this will not require a full-time complement of staff. For others businesses such as theatres, nightclubs, small indoor pubs and summer festival businesses for whom social distancing makes opening not viable, the furlough top up will be impossible because they have no cash coming in.
Consider what flexible support can be given to other operators. For many businesses that do reopen it will be at significantly reduced capacity with higher costs such as more staff, security and PPE. They too need more flexible support.
Work with local authorities, take innovative action to help businesses expand operations and boost tradeby reducing bureaucracy including:
o Ensuring rapid license variations, on issues such as opening hours or setting up licensed spaces, which currently require long notice periods.
o Reforming the operation of temporary event notices so they are not subject to time limits. Reduce 5 working day time limit for late temporary event notices to 3 working days.
o Deregulating the sale of alcohol as part of any outdoor licensed seating area for the duration of the crisis, so that there is no requirement for separate premises licence/temporary event notice, to allow outdoor bars, or allow a fast track licensing scheme for this.
o Enabling local authorities the ability to operate licensed spaces without going through full licence process or needing temporary event notices
Investigate the conversion of parking spaces and other areas into outdoor seating uses
Build public confidencein going to pubs and restaurants, and the high street by ensuring the track and trace and other measures are fully in place.
Lucy Powell MP, Labour’s Shadow Minister for Business and Consumers, said:
“Small businesses closed to keep us safe. With retail now re-opening, we should shop local and support high streets to give them a boost.
“It’s vital that ministers turn their attention to the hospitality sector, providing clarity and guidance so that businesses can plan to reopen in the coming weeks. That means no more backroom briefings to Tory MPs, and more public advice and guidance to companies about how they can safely reopen.
“Alongside this, we urge the government to publish an action plan which maximises economic viability, whilst minimising the risk to the health of customers and staff. If they fail to act, our communities will lose much-loved pubs, bars and restaurants, and we’ll see a wave of closures and unemployment which will damage villages, towns and cities across the country.”
Lucy Powell MP, Labour’s Shadow Minister for Business and Consumers, commenting on job losses in the aerospace industry at Bombardier, said:
“This is a further body blow to our world-leading aerospace industry and a devastating loss of high skilled, high paid jobs in an area that can ill afford to lose them.
“France and Germany have stepped in to support and sustain their aerospace industry, while our Government continues to drag its feet. With the right action now the UK could lead the world in the green revolution in aerospace; no action will lead to devastation and long-term damage to communities which rely on these jobs.”
For those retail workers who have done so much to support us all during the crisis, these changes would put greater pressure on them.
Over recent weeks and months we’ve seen just how important retailers are, both in keeping our economy moving and ensuring our shelves are stacked with vital food and supplies. Their value was reflected in the inclusion of retail workers on the Government’s list of essential workers where they were rightly afforded greater support during the Covid-19 crisis.
When we show our support for key workers on the frontline of our national effort to overcome the devastating impact of this crisis, this includes retail staff. But rather than being rewarded by the Government with long sought-after protections against increasing levels of violence and abuse aimed at them as they go about their job, for instance, retail workers are once again faced with the prospect of unwelcome changes to Sunday trading laws.
Alongside unions like USDAW and many retailers themselves, we’ve been clear that whilst supporting the economy as we emerge from this crisis is vital, deregulation of Sunday trading hours is an unnecessary and potentially damaging move.
For those retail workers who have done so much to support us all during the crisis, these changes would put greater pressure on them. Many retailers are still struggling with staffing levels through enforced absences as a result of the necessary measures taken to combat the spread of this disease, and extending opening hours would put even more strain on workers.
Aside from the impact on retail workers, the economic argument behind any changes has yet to be made too. Small shops have suffered a lot through this crisis and our high streets would be hit hardest by these plans putting their future viability in peril. The long-standing arrangements have worked well for years now, and it remains to be seen what benefits would arise from deregulation of trading laws, and who these changes would help.
It’s unlikely any move would be popular, either. Figures from the Association of Convenience Stores suggest 58 per cent of the public support the existing arrangement. The public has seen just what a crucial role retailers and retail workers have played during this crisis, and any decision to place them under further strain would inevitably be met with resistance from the public as well as many in the sector.
The case for supporting our economy and tackling the effects this crisis has had on it is a crucial one, and I support these efforts. But this proposal is unnecessary, unwelcome, and unlikely to provide the boost our economy needs. The government should drop their misguided plans to deregulate trading hours and focus on supporting our high streets where businesses face uncertainty far into the future. And when it comes to retail workers, the Government should be taking this opportunity to support them further for their efforts, not enforce misguided changes that will simply put hard-working retail staff under even greater pressure.
Lucy Powell MP is the Labour and Co-op MP for Manchester Central, and the Shadow Minister for Business and Consumers
Lucy Powell MP, Labour’s Shadow Minister for Business and Consumers, responding to the confirmation that non essential retail will re-open on the 15th June, said:
“This news will be welcomed by many including struggling high street businesses which have been forced to close to keep us safe. It’s important though that employers keep their staff protected, and that staff and the public have confidence in the measures Ministers have set out to limit the spread of this virus as the lockdown is eased.
“Many challenges remain for our high streets. Ministers must decide on clear guidelines for hospitality businesses reopening as soon as is safe and possible so bars, pubs, restaurants and cafes can have certainty.”
