London's retail chiefs call for Tier 4 support, as the South East plunges into new lockdown

Leaders of London’s retail industry have called on the UK government to offer extra support to companies in Tier 4.

Jace Tyrell, Chief Executive of London’s New West End Company, urges for a freeze on all business taxes in Tier 4, warning that London’s shopping centres will see a 2 billion pounds drop in sales this Christmas, and is “highly likely” to see an 80 percent year-on-year drop in sales by March, reported the Evening Standard.

Richard Burge, Chief Executive of London Chamber of Commerce and Industry, said: “We need to call Tier 4 what it is: lockdown. With our hospitality businesses already closed, the vast majority of the high street follows suit. International travel restrictions have huge implications for London’s airports and onward benefit into the capital’s and UK economy. The Central Activity Zone, that drives the economy of the whole country, has been closed. The Chancellor must announce exceptional and immediate cash and grant aid for all retail, leisure and hospitality business that will be shutting their doors.”

Exceptional and immediate grant aid

Andrew Goodacre, the chief executive of the British Independent Retailers Association (Bira), which represents thousands of independent shops, told the Guardian: “The closures in the south and south-east were a disaster for those businesses. They have only been open for 17 days in the busiest month of the year and will now miss out on the festive period and new year sales. They need financial support that reflects what they have lost and certainly better than the grants made available in November (many of which have not been paid).”

The new Tier 4 restrictions across London, the southeast and east England could cost retailers 4 billion pounds in lost trade, the Retail Gazette said. UK ministers met on Wednesday to discuss what further action may be needed to contain the spread of the new Covid-19 variant. Health secretary Matt Hancock said: “Tier 3 not enough to control new variant, this is not a hypothesis this is a fact, and we’ve seen it on the ground.”

UK businesses saw profits fall by an average of 20 per cent year-on-year in November, according to business tracker Opinium/Cebr. December’s results are likely to worsen.

Article source: The Evening Standard, Guardian, Retail Gazette; photo via Pexels