How will the delay in Freedom Day hurt businesses?
The hospitality, events and entertainment industries are in trouble after gearing up for reopening on June 21 (Picture: Getty Images)  The delay of Freedom Day in England, from today until July 19, has come as a bitter blow to many business sectors. Hardest hit will be companies in events, hospitality and theatre, who will be unable to resume trading as normal. Despite the delay, though, support schemes will gradually be withdrawn or diluted throughout the summer, with experts stating this could sound the death knell for some businesses. Many firms have fought incredibly hard to stay afloat throughout the pandemic and are struggling with the damage done to their cashflow and revenue, says Claire Walker, co-executive director of the British Chambers of Commerce. It would be extraordinary if we saw government retracting support to businesses now, given that some firms will remain unable to trade fully and others effectively forced not to trade at all.  Where delay will bite hardest  While many of us are relishing getting back to doing the things we enjoy, including eating out in pubs and restaurants and even going to the theatre, many of the businesses behind those activities are barely breaking even. Stuart Cole, macro economist at Equiti Capital, says that while stores can overcome limits on in-person shopping by expanding online services, this isnt possible for certain other sectors. This approach is not suitable for the likes of cinemas and theatres, while efforts by pubs and restaurants have generally met with limited success, he says. He adds that the financial consequences of extending social distancing requirements beyond today may potentially lead to more of the hospitality/entertainment sectors choosing to close temporarily until they are finally removed. Pubs, cafs and restaurants can operate fewer tables under social distancing rules, while customers are not allowed to order at the bar, creating greater staffing needs. Kate Nicholls, chief executive of industry trade body UKHospitality, says her sector is unable to make a profit under the current restrictions, with most pubs and restaurants unable to open fully. Events venues like The Wellbeing Farm are still unable to run at full capacity (Picture: Martyn Hand)  This four-week delay to lifting restrictions will cost the sector around 3 billion in sales, put at risk 300,000 jobs and have a knock-on impact on bookings throughout the summer and into the autumn.  Meanwhile, those working in events, from weddings to large-scale festivals, are also unable to operate at full capacity. Although weddings are now allowed to go ahead with larger numbers of guests, there are still restrictions, including the need to social distance, guidance against dancing and a need for table service that will mean many celebrations will not go ahead. Celia Gaze, who runs The Wellbeing Farm wedding and events centre in Lancashire, says the lifting of some limits means she can accommodate larger weddings but they will not be the same. With no dancing or stand-up drinks reception, the couples arent happy, but I think they just want to get married. No cancellations as yet but keeping my fingers crossed, she says. Celia Gaze who runs The Wellbeing Farm, said she worries couples wont want a socially distanced wedding (Picture: Simon Kearsley)  Other events, including festivals, still face heavy restrictions. Peter Heath, managing director of the Professional Lighting and Sound Association and steering committee member of #WeMakeEvents, says the delay is just the tip of the iceberg for the industry, which has suffered disproportionately over the last 16 months. The confidence of those who normally put months into planning for British and European tours, gigs, comedy shows and theatre productions has taken yet another hit, he says. The Government must recognise that even if live events reach 70-80% capacity, businesses simply cant break even.  Theatres, too, are counting the cost of botched reopenings. Ken Wax produces the popular musical Six, based on the stories of the six wives of Henry VIII, and is opening a performance for younger children of What The Ladybird Heard, by Julia Donaldson. Six The Musical is back in the West End, but at just 50% capacity (Picture: James D. Morgan/Getty Images)  Ladybird is running at the Palace Theatre in London, which usually runs Harry Potter And The Cursed Child, one of the larger productions that cannot function with social distancing. Six is currently selling at 50% capacity, and Ken says there is very little profit at this level. For larger shows, he says that breaking even with social distancing is virtually impossible. We always said we just wanted to prioritise getting back to work for everyones mental health, but a decision like that is very different for a large-scale musical, because you cant play to 40% capacity.  Anthony Alderson, who runs the Pleasance Theatre in Islington in London, and also the Pleasance venue at the Edinburgh Fringe, says he is desperate to get back to normal. He feels that the rules in Scotland, which differ slightly from England, feel particularly draconian when it comes to entertainment. You can sit in a pub at one metre but as soon as I put a fiddle player on the stage, you have to move to two metres. It feels almost spiteful.  Andrew Lloyd Webber will be opening Cinderella in line with the governments 50% capacity rule (Picture: PA)  He adds that West End shows have spent thousands preparing to open, and may now be unable to do so. He had some sympathy with Andrew Lloyd Webber, when he vowed to stage the world premiere of his 6million musical Cinderella fully in the West End, even if the Government wouldnt allow capacity audiences. With preview performances scheduled from this Friday, the composer and impresario threatened legal action and had been quoted as saying: We are going to open, come hell or high water.  Talks with Prime Minister Boris Johnson to reopen the musical as a Covid safety pilot event failed after Lloyd Webber rejected the offer. This Saturday he was reported as saying: I have made it crystal clear that I would only be able to participate if others were involved and the rest of the industry theatre and music  were treated equally. This has not been confirmed to me.  Cinderella will now open on June 25 as planned, but at 50% capacity. The end of support  The Government has rejected calls for businesses in affected industries to continue to receive more targeted support, with many of the schemes that have kept businesses afloat for the last 16 months coming to an end. Business rates relief is currently 100%, but this falls to 66% at the end of this month and runs until the end of the tax year. The furlough scheme also becomes less generous for employers from the start of next month, when they will have to contribute more to their employees wages. Anthony Alderson says he is concerned by the change. Weve done all right through the furloughs, but if theyre going to delay us theyve got to extend it, because otherwise we are going to hit this cliff and go off it if we are not careful.  UKHospitality is calling for support on business rates to be extended to at least October. If the supports provided by the Chancellor are not sustained and adjusted, businesses will fail and getting this far will count for nought, says Kate Nicholls. Meanwhile, many businesses are already having to repay bounceback loans they took out at the beginning of the pandemic, despite continuing restrictions. Affected businesses are dismayed that the Prime Minister is unable to guarantee the country will open up fully in July. However, Anthony says he understands how difficult it is to make such decisions. Im not a scientist, this is too easy for all of us to say, Oh well, of course, theres evidence the vaccinations block transmission, he says. We have probably to be a little patient. Get in touch by emailing MetroLifestyleTeam@Metro.co.uk. 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