'Cliff edge looming' for Sheffield's night-time economy
The council wants more support for businesses
Last updated 11th Feb 2021
We’re told there’s a 'cliff edge looming' for Sheffield's night-time economy as businesses in the city cling on to survival during the pandemic.
The council's urging the government to do more to support the hospitality and entertainment industries which consist of more than a thousand companies across the city.
It's told a Parliamentary enquiry it wants an extension of furlough, business rate relief and lower VAT for the rest of the year.
Nick Simmonite, who manages the Frog and Parrot and chairs UNIGHT which represents the Sheffield nightime community, tells us that support is due to end next month:
"There's certainly a cliff edge looming. Is it a worry? Absolutely. Bizarely I've seen some of my peer group seem less worried about it and more just absolutely defeated. They can't pay a business rates bill, for example, without any income. It just isn't going to get paid and will then lead to a forclosure on that business.
"It's a sector that historically supported 1 in 8 jobs in Sheffield. We're not so sure that's the case now because a good number of places have quietly disappeared from the marketplace. It's a worry that many of our businesses closed in March and have not really had the opportunity to open since and there's no immediate prospect of that happening.
The council also wants more money to create new businesses and train new staff entering the sector, as well as a national campaign to restore consumer confidence when lockdown is eased.
Nick says without more help we're bound to see more businesses folding:
"There's a number of businesses that are just clinging on to continue receiving those furlough payments. But the bills are stacking up and as soon as commercial landlords come knocking on the door I think that will see a number of places exit the nightime economy. We're just trying to make sure that our teams cling on."
Cllr Mazher Iqbal, Cabinet Member for Business and Investment at Sheffield City Council, said:
“We have iconic venues and events in Sheffield that are known worldwide and are an integral part of our appeal as a visitor destination. That there is something for everyone is central to Sheffield’s uniqueness, and we simply cannot afford to lose these much-loved and valuable assets and their vital contribution to the local economy.
“The Council is calling on the Government to support these businesses who have been hardest hit by the pandemic so that when the time is right, they can come back fighting and provide the vibrant nightlife we are all so looking forward to experiencing again."
The government has previously said it has no plans to extend the cut to VAT because it comes at a "significant cost".
Ministers are promising to outline the next stage of their plan to support jobs and businesses in the budget next month.