Coronavirus: Forest businesses plead for help amid fears of 'ghost towns'

FEARS coastal areas could become “ghost towns” amid the coronavirus lockdown have caused New Forest business leaders to warn local firms need urgent help or they will go under.

Matthew Lawson, chair of the New Forest Business Partnership (NFBP), pointed out many cannot access the multi-billion-pound financial help on offer and risk “falling through the cracks”.

Antony Climpson, head of tourism group Go New Forest, has also pleaded with Chancellor Rushi Sunak to relax rules of the furlough scheme in which the government funds salaries of workers who may otherwise lose their jobs.

The calls come despite New Forest District Council having already distributed £28.6m in government grants between 2,773 local firms.

The NFDC cabinet member responsible for the economy, Cllr Michael Harris, rebuffed criticisms it took “too long” to dish out the cash.

However, concern is growing because at least 13% of jobs – more than 9,000 – in the New Forest relate to the tourism industry. It is hard hit because the lockdown has come when businesses would normally be busy, with some making enough money now to cover their yearly costs.

While industry leaders are grateful for the help, they point out many local tourism firms, such as bed-and-breakfasts, self-caterers and producers, are ineligible because they are not included in the business rates register operated by NFDC.

Mr Lawson told the A&T: “The small and micro businesses in the New Forest will be the hardest hit – particularly those who fall through the cracks of government support.

“It is certainly not the case that every business in the UK has been bailed out by the government – there are many businesses, for whatever reason, which are struggling because they do not qualify for any support.”

He said NFDC took “far too long” to distribute the grant and that resulted “in small businesses struggling with payroll and ongoing running costs”.

A lockdown deep into May would force firms to close permanently, he said, which would be a “huge loss to the local economy”.

NFBP was helping “in any way it can”, he stressed. “NFBP is also putting pressure on local and national government to provide urgent financial and business support to desperate New Forest businesses, in order to avert a significant number of job losses and business closures in our local economy.”

In his letter to the Chancellor, Mr Climpson said there was a “variety of anomalies” in the practical application of the government’s business support schemes, such as clarity over whether insurance firms would pay out Covid-19 loss claims.

Rules that ban furloughed staff doing any work inordinately hit Forest businesses, he said, such as riding centres which looked after animals. The fact workers had to have a contract started by 1st March to be eligible hurt those in recurring, seasonal tourism jobs, he added.

Mr Climpson pointed out the lockdown may last into the summer, meaning many companies will have “lost the bulk of their 2020 income” with “not enough funds to survive the winter”.

He said the government should provide special ongoing support for tourism.

His comments echoed the District Councils Network (DCN), which called on the government to commit to providing “short-term emergency intervention” to help local economies “ride out this storm”.

Cllr Mark Crane, DCN lead member for stronger economies, said: “There’s a real risk that if they don’t recover, our tourist towns could become ghost towns. It will also put huge pressure on families suffering lost income and high unemployment.”

Locally, the Liberal Democrat opposition group offered a political olive branch to the Conservative NFDC ruling group, suggesting they jointly lobby MPs Sir Desmond Swayne and Julian Lewis for more funding, start a special financial assistance fund from council reserves, and a “pay forward” scheme.

Cllr Michael Harris, NFDC’s cabinet member for economic development, acknowledged a high proportion of tourism firms were being “greatly impacted” by the current restrictions and that the effect on the district’s economy will be “significantly felt” over the coming months.

It was too early to predict the level of job losses, he added, but he insisted the government scheme would protect firms from being forced to make redundancies.

NFDC would be monitoring the situation as it developed since it expected cashflow to become a “significant issue” for firms and their ability to survive.

Cllr Harris said NFDC’s current focus was to ensure firms had been connected with all possible government support they could access, and it was in touch with many on a daily basis. He pointed out the resilience of many businesses, such as cafes, restaurants and pubs diversifying their offer to take advantage of the relaxed takeaway laws, and manufacturing firms adapting and making hand sanitiser and 3D printing face masks for the NHS.

Addressing Mr Lawson’s criticism of delays to grant distribution, he added: “I am both proud and amazed at the speed with which our teams have been able to react to the effects of Covid-19 on the businesses of the New Forest.”

Within seven days it facilitated £24.6m worth of payments, he said, claiming it was one of the first local authorities to pay out and had received “positive feedback” from businesses.

Firms needing information can visit www.newforest.gov.uk/coronavirusbusiness

NFBP is running a free, weekly business support hour online, 3pm every Wednesday with details available at www.nfbp.org.uk