Row in Blackpool over support for 'unviable' businesses such as entertainments

Chancellor Rishi Sunak unveiled extended aid for businesses amid the coronavirus crisis in his Winter Economic Plan but some sectors, such as entertainments and events have not been able to access support.

The Labour Party has blasted the Government for failing to support workers and businesses that are currently shut down or operating at hugely reduced capacity as “unviable” – even though they are doing the right thing and following government guidance to help tackle the coronavirus.

It said under his announcements jobs not worthy of support include those in the wedding industry, events and exhibitions, major parts of the night-time economy like nightclubs and pubs, festivals, sports venues and theatres which will get little or nothing under the Winter Economic Plan and may face being shut for another six months.

Chris Webb from the Blackpool Labour Party urged the Government to protect these industries vital to a resort like Blackpool for the future.

And he pointed out that the government’s Job Support Scheme is only open to those employers who offer their employees at least a third of their usual hours – impossible for those industries still closed.

The scheme is also fundamentally flawed because, for every two members of staff, it is cheaper for a company to bring back one member of staff full-time and fire the other, than to have two workers working part time.

He said, “Blackpool cannot afford to have vital sectors of our economy written off at this difficult time. Nightlife, sports and creative industries absolutely have a key future in the revival of Blackpool and play a vital part in keeping communities together.

But Blackpool North and Cleveleys MP Paul Maynard said a case was being made for more targeted support to help the entertainments sector.

He said: “The Government has done all it can to support companies and protect jobs in my own constituency and across the country, in response to an unprecedented public health emergency.

“In Blackpool North and Cleveleys alone, nearly £7m has been paid out through the Self Employment Income Support Scheme, helping more than 2,400 individuals. Thousands more jobs have been supported through the Coronavirus Jobs Retention Scheme, alongside millions of pounds paid out in grants to local businesses.

“Last week the Chancellor announced a further targeted package of support, recognising the need to protect jobs in those industries which have been radically changed over the past months.

“I do, however, recognise that some sectors require additional help. I’ve met with local people who work in the events and music industry and made clear to Ministers my view that more targeted support packages may be needed in those sectors worst hit. I will continue to make this case.

“I’ve supported bids to the Culture Recovery Fund from the Grand Theatre and encouraged others in the sector to apply for grants available. I continue to liaise with organisations like Visit Blackpool and Arts Council England to support our hospitality and culture sectors, to ensure support and funding reaches those who most need it.

“I am also contributing to the work of the Excluded All Party Parliamentary Group, which is seeking to secure additional help for those who have not been able to access existing support schemes. Businesses, small and large, across our town should be given every chance to succeed.”