The Government to date been widely supported by the UK as it tries to combat the impact from Covid-19. That support has been echoed across almost all political parties, but patience now seems to be running thin as delays to get PPE to NHS front lines continue.
The numbers of people dying each day is truly frightening, alongside these dreadful statistics continued promises to get PPE to where it needs to be is equally frightening, especially for those on the front lines and their families.
The media are now less restrained in calling out the Government on these ongoing delays, which doesn’t help itself by wheeling out the extremely unpopular Priti Patel to front Government messages. Patel always comes across as uncaring, and defiant of anyone that has the audacity to question her.
The Government spokesperson that has to date seemed in control and to eloquently communicate the Government’s message, is Rishi Sunak. But, just like PPE not being on the NHS front line in sufficient volume, neither is Sunak’s emergency financial stimulus in the bank accounts of the businesses that need it.
The pandemic is already and will continue to impact primarily in two areas, health and economics. Health in the list of priorities has to be 1, 2 and 3, but we do need to consider the economy and for us that focus is on the hospitality economy.
Most hospitality businesses were closed down overnight on 20th March following Prime Minister Boris Johnson strict social distancing measures.
In the same press conference Chancellor Rishi Sunak unveiled the first stage of his emergency financing package for all businesses impacted from the measures announced by Johnson.
Similarly to the lack of sufficient PPE on the front lines for NHS staff, the emergency funding hasn’t arrived, just 0.65% has arrived, or if you prefer 99.35% hasn’t arrived.
The immediate shut down of hospitality providers created an equally immediate shut down of cash flow to those businesses.
Rishi Sunak telling us that he has told banks to provide emergency funding that from the actions of banks to date not only hasn’t arrived but is looking like it will not arrive, is political suicide.
As each day passes so do untold numbers of hospitality businesses, which in turn creates cash flow problems for their suppliers, or their demise. So, inaction by the banks is costing businesses their very existence due to following Government advice.
Either Sunak can instruct banks to do something or he can’t, and if he can’t it looks like he will need to provide that funding via a route he does have control of. HMRC would seem the all too obvious answer and very, very soon please.