Coronavirus: Lake District businesses 'can't survive' without more support

Some 65,000 jobs are supported by the tourism industry in Cumbria

The Lake District could lose half of its tourism-related businesses without more financial support, it has been claimed.

There have been cancellations and a drop in bookings from those living in tier three areas, such as Lancashire, who account for much autumn trade.

The majority of Cumbria is in tier one, making it ineligible for new support being offered to tier two firms.

The government said they were being helped by several existing schemes.

'Turning the tap off overnight'

Many businesses had been relying on the October half-term but have suffered cancellations due to people advised not to travel.

Gill Haigh, managing director of Cumbria Tourism, said a survey showed business and consumer confidence was "worsening".

"More than half of our businesses are now telling us that they really don't feel they can survive the next six months without support," she said.

Hotelier Simon Berry said the industry was also suffering due to cancelled Christmas functions, which kept cash flow coming during winter

Hotelier Simon Berry said he has received just under 1,500 cancellations and restrictions on domestic tourism were akin to "turning the tap off overnight" to income.

"We live in a very interconnected world and it's naive of government to think you can lock one area down, give some support to the business in that area, but not to have impact in adjoining areas," he said.

Mr Berry, managing director of English Lakes Hotels, said the job support scheme and a VAT reduction had helped but thousands of small businesses, that rely on each other, had "very lean reserves."

Liberal Democrat Tim Farron, MP for Westmorland and Lonsdale, has written to the Prime Minister calling for compensation like other areas.

"If you are a guest house in Windermere and you effectively had to close down next week because all of your bookings have dried up because all your customers were in tier 3 areas, you get nothing at all," he added.

The Treasury said it had supported Cumbria and businesses could use the furlough scheme until it ends.

"After that businesses which are able to operate but facing lower demand over the winter months due to the pandemic will continue to receive support through the Job Support Scheme, protecting jobs and enabling businesses to continue operating."