Uncertainty will hurt high street - we need long term commitments

As the country enters a second lock down tomorrow Ian Sandison CEO of Cambridge BID discusses what it means for Cambridge City Centre. 

Cambridge was doing ok, our footfall last week was up 9% on the previous week and only 29% down on last year, this compares very well to many cities across the UK, we have seen some shops close but we have also seen a plethora of new openings over the summer and there was some reason for optimism. 

Then on Saturday out of the blue a new lockdown. Businesses are very good at planning ahead, they put a lot of time and effort into operational planning, logistics, ordering stock and their promotional campaigns and whilst they are able to adapt to these situations it is the uncertainty that is the real challenge here, last week the Prime Minister was saying a national lockdown was not a preferred option tomorrow we start one! It seems like there is not a plan, are we trying to save lives, save the economy, protect the NHS and keep our children educated, clearly we cannot do it all and some focus is required. 

We are doing more testing, capacity passed 500,000 tests a day on October 31st. Whilst this is higher than most countries and part of the reason for so many cases being detected in the UK, when someone is diagnosed the track and trace is ineffective and not localised enough, people are not monitored in their isolation they are not sufficiently compensated for staying at home, so the low paid service economy worker, often most at risk is not incentivised or for that matter even penalised if they do not isolate. 

If the business community could see that people with the virus were probably looked after and managed through their isolation they would feel more confident about remaining open and that the billions they have spent on Covid measures were worth it.

This second lockdown will be a great challenge for the high street and thousands of retail premises will be forced to close. This denies customers access to many of their favourites shops and brands, the opportunity to meet friends for coffee and lunch and with pubs closing the chance for many who live on their own to get out, have a chat, have a pint and feel part of a world that is passing them by. 

There will sadly be many redundancies in an already very damaged sector and many of these workers will need to retrain and seek employment in a new sector. Business are better prepared this time, they have been through a furlough process before, many have adapted to an online presence, this time offering click and collect is being actively encouraged but still it is going to be tough at a time of the year when many shops make their profit. At least pubs, bars and restaurants are still able to sell takeaway alcohol, for beer led pubs this was their only income in the summer but this still leaves the community local pub more vulnerable.

The business support options are also inadequate and constantly changing, extending the furlough scheme is helpful but with four hours notice on a Saturday night, I am sure many business owners then spent much of Sunday speaking to staff who were about to return from furlough or sadly placing more staff into the scheme.

It could all be worth it, if it was only another month and we we’re able to reopen that could be ok, but to then have government ministers on TV on Monday saying it might extend is not helpful. Consumers who may have been storing up their Xmas spend for December will remain uncertain and possibly just by online. 

There is also little evidence to say that social contact in shops is where the virus is being transmitted, clearly students returning all over the UK and socialising in bars and restaurants is more of an issue. 

Retailers will comply with the rules and play their part to ensure their staff and customers remain safe, for many years the service and hospitality economy has been forgotten by governments who saw it as a cash cow with business rates and other taxes, the response at times in the past few months from the government shows they are still not in tune with this sector and I would call for some long term commitments. 

Extend the business rates holiday through to April 2022, prioritise the review of the very outdated business rates scheme, offer grant support to businesses with a rateable value over £51,000, we have over 400 of these in Cambridge, many of them small independents in the city centre, they have thus far has no Government grant at all, get track and trace working and support but monitor those isolating, set out some clear guidelines for entering and more importantly exiting lock downs, report using one consistent dataset, there are so many and when announcements need to be made let the people and Parliament hear them first, not the press.  

Ian Sandison, CEO Cambridge BID

Ian Sandison, CEO Cambridge BID