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Hospitality Industry Calls for Financial Help and Loan Scheme Amendments
UK hospitality industry chiefs are urging Kemi Badenoch, the business secretary, to extend financial assistance to businesses by revising the terms of emergency loan schemes established during the pandemic.
Extension of Repayment Terms for Energy-Struggling Businesses
Kate Nicholls, CEO of UK Hospitality, has written a letter to Ms Badenoch, urging collaboration with the British Business Bank (BBB) to extend repayment terms under the Coronavirus Business Interruption Loan Scheme (CBILS). The industry is heavily reliant on such support due to expensive multi-year energy contracts.
Energy Bills Concerns and Debt Repayments Impacting Businesses
Many UK Hospitality members are worried about collapsing within the next year, with energy bills being a major concern. Cashflow issues resulting from COVID-related debts, including bounceback loans and CBILS repayments, are exacerbating the situation.
Challenges with CBILS Repayment Terms and Credit Rating Impact
Participating banks are currently restricted from extending CBILS repayment terms, except in exceptional circumstances, which triggers a negative impact on the credit rating of businesses. Ms Nicholls calls for a revised set of conditions that allow for CBILS loan extensions without adversely affecting credit ratings.
Request for Leniency in Time To Pay Concessions and Deposits
UK Hospitality urges the business secretary to advise HMRC to adopt a more lenient approach to Time To Pay (TTP) concessions. Fully viable businesses have been denied TTP despite providing cashflow evidence, primarily due to energy suppliers demanding excessive deposits and delayed repayments.
Calls for Expanded Support and Guidance for Business Customers
UK Hospitality proposes extending the guidance given to banks for mortgage customers, which allows for payment delays without fault, to also apply to business customers. These measures are critical for the survival of numerous businesses in the hospitality sector amidst the ongoing energy bills crisis.
