Chichester BID backs calls for ‘special support’ measures for retail, hospitality and leisure businesses

| December 2020

On Wednesday 2 December, England fell into a Tiered system, placing irrevocable pressure on hospitality businesses but also those in retail and leisure sectors.

UKHospitality has already warned that the Tier 3 system will result in 94% of hospitality businesses becoming unviable by March 2021. In the Tier 2 system, which Chichester is currently in, 75% of hospitality businesses could become unviable by March 2021.

Sector specific measures require sector specific support, and a manifesto put together by Croydon BID, British BIDs, ATCM and The BID Foundation outlines a range of packages which will provide a vital lifeline for hospitality, retail and leisure businesses alike. 

A Chichester BID spokesperson said: “Additional help is required so that businesses in Chichester can survive and recover from the new tier systems put in place. We need to work together to help protect the future of high streets everywhere and to avert further unemployment. 

“At the very heart of communities is the retail, leisure and hospitality businesses and this is no different in Chichester. This campaign helps us get behind these businesses, offer as much support as possible and help to keep them afloat.”

The manifesto follows intense and thorough talks with businesses, Business Improvement Districts [BIDs], Local Authorities, destinations and industry bodies to provide options of support to help the UK economy ‘Bounce Back Better’. 

Matthew Sims, Founder of the ‘Bounce Back Better’ campaign and CEO of Croydon Business Improvement District, says: “The government has provided assurances it will do whatever it takes to support British businesses and help them to bounce back from the coronavirus pandemic. Businesses are approaching a cliff edge and need the government to provide a parachute in sector specific measures to stave off mass closure and job losses. Now, more than ever, we need the Chancellor to stand by his promise to do whatever it takes.” 



Local Authorities lack the administrative and payments infrastructure required to facilitate the monthly financial support model proposed by government for eligible businesses in Tier 2 and Tier 3 – many businesses are receiving funds too late, or worse not at all.  

We ask Government to provide a one-off ‘Bounce Back’ grant of up to £15,000 for retail, hospitality and leisure businesses in Tier 2 and Tier 3 across England and Wales with a rateable value of up to and including £150,000. This would support 137,000 businesses’ vital funds delivered in a manner Local Authorities are equipped to distribute at a total maximum cost of £2.05bn.  


While employees receive 80% of their salary through the extension of the furlough scheme, businesses are still paying out for National Insurance, placing greater strain on survival. At an average wage of £9.50 per hour, working 7.5 hours per day, 5 days a week, the National Insurance cost to a business in hospitality with 10 staff is £491.60 per week.  Every month, on top of all the other costs, businesses will be paying out £1,966.50 – nearly two thirds of the upper limit of funding provided by the Government currently.

We ask Government to remove the burden of National Insurance from employers whose staff are on furlough, saving the average business £2,000 per month until 31st March 2021.


The ‘payment holiday’ for retail, hospitality and leisure businesses with a rateable value less than £51,000 earlier this year was an extraordinary and critical measure saving each business up to £25,000, a total tax cut worth over £1bn.

We ask Government to extend the 100% business rates holiday into 2021/2022 for businesses in the retail, hospitality and leisure sector. Every pound saved is a pound to help businesses stay trading and retain staff. 


The cut in VAT from 20% to 5% is a major boost for the hospitality sector enabling businesses to pass a £4.1 billion saving onto consumers. With a vaccine becoming a reality in the coming months, our Bed and Breakfasts, hotels and restaurants could be a vital catalyst to local economic recovery. 

Research by CGA for UKHospitality, the British Beer and Pub Association and the British Institute of Inn keeping found support on VAT and business rates are top of hospitality’s essential business support needs. Four in 10 affected businesses have stated that the government needs to extend its VAT cut to remain viable.

We ask Government to extend the VAT reduction from 1 April 2021 up to and including 31 March 2022. 

Bill Addy, Chair of the BIFD Foundation and CEO of Liverpool BID Company said: “The government has the chance to act now and lessen lasting damage to economic growth and jobs. The UK’s economy recovery rests on local businesses continuing to trade and generate employment opportunities. This manifesto asks the government to extend existing measures and introduce a one-off funding injection that together will stem the bleeding out businesses are facing.”

To find out more and download the manifesto visit