Social Distancing Restrictions: Support for the Night-Time Economy

Stewart Hosie Excerpts

Tuesday 8th June 2021 Westminster Hall

[Stewart Hosie (in the Chair)]

I remind Members that we have made some changes to normal practice in order to support the new hybrid arrangements. Members attending physically should clean their spaces before they use them and as they leave the room. Mr Speaker has stated that masks should be worn in Westminster Hall, except when you are speaking.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

I beg to move,

That this House has considered social distancing restrictions and support for the night-time economy.

I asked for today’s debate because I am vice-chair of the all-party parliamentary group for the night time economy. As the Member for Brighton, Kemptown, I also represent a large and diverse number of venues, bars and clubs. Not only am I the MP but, like many Members, I am a patron of many of the venues in my constituency, such as Revenge and Legends, and I miss my nights out with my friends as much as I know the venues miss having us. When I talk to bar and club owners, they tell me the same thing: the uncertainty is killing them.

On 16 December, when covid cases were spiralling out of control, the Prime Minister insisted it would be “inhuman” to cancel Christmas, and he gave every assurance that it would go ahead. Pubs and restaurants had their staff hired, and the stockrooms were full and ready for a shortened Christmas season. On 19 December, just three days later, and after saying it would be inhuman, the Prime Minister cancelled Christmas. I do not say that he made the wrong call in locking us down. History will show that he was right to do so or, if not, that he should have done it earlier.

I raise what happened in December because I worry that we are repeating ourselves. The Prime Minister bumbles away through his interviews, assuring the nation that everything will be just fine with the road map on 21 June. Meanwhile, we have Whitehall officials briefing today’s papers that the date will be pushed back. What is it? My fear is that the harsh reality will catch up with the Prime Minister yet again and he will have to acknowledge what we already know: the 21 June deadline might have to be pushed back a few weeks to get everyone vaccinated. Those who will suffer are the workers and businesses who have trusted in good faith that they should work towards that date, although—granted—no cast-iron guarantee has ever been given.

The Night Time Industries Association conducted a survey of its members. Nine in 10 businesses fear that a delay in the full reopening of nightlife would threaten their survival; 85% require at least two weeks’ notice to open up, and over a third said they need four; 95% have already made financial commitments; on the logistics of opening up on the 21st, 54% have already ordered stock—as a real ale man, I know that that stock goes off incredibly quickly, so it has to be used in time; 73% of businesses have called in staff; 60% have sold tickets; 64% have booked entertainment; and 80% have already spent finances on marketing and promotional materials.

Louise from the Camel Club, a family nightclub in Huddersfield, told our APPG that she does not know under what conditions the nightclub will be able to open. She does not even have a rough idea of the direction that it will be going in. For example, when it opens, is social distancing likely to be required? What other rough ideas will be given? This has made it extremely difficult to even prepare. She is plucking things out of thin air rather than at least following guidelines that could change. That makes things difficult operationally and financially, so what guidelines can be issued so that clubs can at least work towards a general direction? Will they be able to open on the 21st? If not, can there be reassurances that financial support will be offered?

The pandemic has presented a real jobs crisis too. According to Unite, 48% of hospitality workers say that they will look for work in a different sector post pandemic. The industry is heading towards a skills employment crisis. The problem is that the so-called barista’s visa—the roll-out of potentially low-paid, exploitative apprenticeships on a visa—is not the way forward. There have been 650,000 job losses across this sector alone.

This is not just a problem for those in hospitality. There is a knock-on effect—for example, in the security business. The UK Door Security Association warns that six out of 10 supervisor posts are now unfilled in nightclubs, music venues, pubs, bars and festivals. The posts being unfilled risks the venues being unopened. That was one of the reasons we had to cancel Pride in Brighton: we just could not secure the security staff, as well as not having the underwritten insurance, because the Government did not underwrite that either.

So many door staff have been forced to find other forms of income. They have opted to use their security licences in more stable environments, such as retail or covid testing centres. There is an increase in resource demand, as venues have to adhere to covid requirements. If they are able to go ahead, many festivals will now be squeezed into a tight summer season. We also see increased demand in certain pinch points.

The Government must work with the associations, and with organisations such as Unite and other unions, in their proposed hospitality commission, to establish a plan for the sector, to retrain workers who lose their jobs and to ensure that those people do not face long-term unemployment. In my view, the kickstart scheme is not fit for purpose on hospitality. It has offered only 60 of the 1,260 placements to hospitality workers. Hospitality training programmes should be focused on upskilling the industry and creating new, quality jobs with guaranteed hours.

Business owners in the night-time economy now have debts equal to three years of trading profit. That is £2.5 billion just in debts that they did not have before the pandemic and that they will have on opening day. They are also having to potentially invest in social distancing measures that they do not know will even be implemented. That is why the Government need to give more guidelines on what might happen.

The moratorium on forfeiture is to be lifted at the end of this month, and no solution has been offered to address the legacy of rental debt wrought by the pandemic. Some 75% of night-time businesses say they fear bankruptcy or insolvency when the moratorium ends, if there is no solution to commercial debts. Some 80% of commercial tenants in the sector still face unproductive discussions with landlords. The situation requires the Government not just to issue guidelines or suggestions to landlords, but to require landlords to get around the table and negotiate with businesses. The Government should come forward with a package to ensure that businesses take no more than a third of the burden—effectively, one year’s operating profits—and that the rest is shared with landlords, other suppliers and maybe even the Government in long-term solutions that would mean these businesses do not go bust, which many are doing.

Regardless of what decision is made next week on social distancing, this issue is not going to go away. We need to hear some concrete proposals from the Minister on what long-term help the Government plan to provide to solve the crisis. Will he commit to matching the Welsh and Scottish Governments in their commitment to 100% business relief for qualifying night-time economy businesses in the 2021-22 financial year? Will he commit to delaying the rise in VAT for cultural, ticketing and other night-time economy venues in the 2021-22 financial year? Will he pledge that the Government will follow the science, allowing events with the mitigations that have been shown to be effective in trials, such as testing, vaccines or other measures, and allowing venues to open in certain situations?

I end with the words from Matthew from Chalk, a nightclub next to my constituency—100 yards across the border. He said to the APPG that he has invested his life savings in the venue—his blood, sweat and tears. Nightclubs are responsible for life-forming experiences for young people—and those who are less young—and are an integral part of our society. They must be protected. They are an integral part of the economies of many cities and towns across our country, and provide jobs for hundreds of thousands of people. I hope the Minister can give Matthew and many others some reassurances about going forward in the next few weeks, so that we can start to get our businesses opened and our economy supported.