Covid: Manx hospitality firms call for continued salary support

Businesses have been hit by a drop in footfall due to the coronavirus pandemic

Salary support for restaurants and pubs on the Isle of Man should continue until at least the end of the year, the industry has said.

Hospitality has been hit by several periods of closure and reduced footfall due to the coronavirus pandemic.

The government has extended the Business Premises Support Scheme (BPSS) until the end of August.

But hospitality firms said this was "too little, too late" as they faced a "really dangerous situation".

More was needed for the Isle of Man's 60 hospitality businesses who had been hit by the cancellation of the TT racing event for two consecutive years, they said.

'Pay debts'

Over 1,000 people are employed by the hospitality industry on the island.

Turnover for the industry was down 40% in 2020 as a result of Covid-19, and is expected to be down by 30% in 2021.

Darren Walker called for more support for firms at an event on Thursday

The BPSS offers firms grants equivalent to the cost of a firm's rates during the period, and eligible businesses must have had a drop in turnover of at least 25% against the May 2019 figure.

A Treasury spokesman said the scheme enabled "the impact of the loss of TT 2021 to be taken into account" in calculating grants.

The Licensed Victuallers Association and Isle of Man Restaurateurs' Association have called for the Salary Support Scheme, which closed to pubs and restaurants at the end of May, to be made available to the industry until turnover for firms stabilised again.

The scheme offered businesses £310 a month per full time employee, with employers continuing to pay National Insurance contributions.

Darren Walker of The Barbary Coast said: "We're not asking for this money so we can go on holiday, we're asking for this money so we can pay off debts."

The BBPS grant scheme was "too little, too late" for many firms, he added.