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Events industry needs Government support to survive

Last week I requested to speak in the House of Commons chamber about the urgent need for Government support for the events industry. Unfortunately, I was not called to speak directly about the pressing concerns many constituents have contacted me to raise over the past two months. However, I am aware of your concerns and difficulties and I will be raising these with the Government at every possible occasion. 

A huge amount of people in Erith and Thamesmead have been impacted by the Government’s failure to offer economic assistance to the events industry during COVID-19.

From the very beginning of lockdown I have received daily emails about the events industry, theatres, the hospitality sector and the creative sector. People who have worked in these industries, contributing to the UK’s economy for years, have been completely abandoned by this Government.

Despite efforts made by myself and colleagues to raise these issues with the Government ask that more support be given, I have unfortunately had to respond to constituents informing them that there is no support package available and the Government doesn’t seem to want to support them.

The Government needs to provide a sector specific support package for the cultural sector; theatres, music, festivals, other live performance venues, but also tourism and hospitality sectors which are inextricably linked.

The events sector is worth £42.3 billion to the UK economy, there are over 25,000 businesses and it sustains 570,000 full time jobs.

There is a reason 35% of the UK visitor economy is accounted for by events. That is because the events industry pulls together the best talent in a whole range of areas. Behind every festival is a team of marketers, performers, hospitality staff, transport operators, event organisers and UK music venues.

Almost every UK music festival has been cancelled this summer, music venues across the country have been unable to open for three months and are unsure of when they can begin to open again, hundreds of thousands of hospitality jobs have already been lost and the industry has warned of thousands more.

What steps is the government taking to support venues which will be unable to open for the foreseeable future, such as music venues and theatres, and therefore unable to subsidise the furlough scheme from August?

If the Government doesn’t act to save businesses and jobs before they are lost we are going to see a huge hole in the economy where our world renowned events industry used to thrive. The Government must act urgently to support people in these industries to avoid a loss of jobs, talent and culture across the UK.

We need a Back to Work Budget for Erith and Thamesmead

It is clear the Government was too slow to recognise the scale of the health crisis from coronavirus and we are already paying the economic price.

I am increasingly worried that the slow and muddled health response is now being followed by a slow and muddled response to saving jobs. The window is closing to protect existing jobs and encourage firms to invest in creating new ones.

There were 2,780 people in Erith and Thamesmead claiming for Universal Credit and other benefits last month, a rise of 132% since the outbreak of coronavirus. Although this is an imperfect measure of unemployment, it hints at the scale of the looming jobs crisis in our community.

Reports the government has pushed back its next full budget to the Autumn worry me, as we’re already behind other countries like Germany, which announced a full economic package weeks ago.

We need an urgent package of economic measures with a clear focus: Jobs, Jobs, Jobs.

Supporting this, we need a strategic withdrawal of support schemes tailored to the needs of specific sectors and areas.

Nearly 1 in 4 people of working age in Erith and Thamesmead are relying on the Job Retention Scheme (16.7%) or the Self-Employment Income Support Scheme (7.22%).

Labour called for and welcomed these schemes, but we are concerned about their abrupt withdrawal which risks pushing millions of people into unemployment. The Chancellor plans to withdraw support for all sectors and areas of the economy at once and has not linked his plan to other public health measures, such as easing social distancing guidelines where it is safe to do so.

This one-size-fits all approach won’t work for sectors like hospitality. Pubs, restaurants and cafes will be operating well below capacity when they eventually reopen, and their fortunes are closely linked to the decisions that are taken on social distancing. It makes no sense to withdraw support for the 2,315 hospitality workers in Erith and Thamesmead at the same time as sectors that are operating as normal and will need less support.

Similarly, firms relying on tourism face losing the majority of trade from the summer high season. Snatching away all support in October, just as the high season ends, could be ruinous for the tourism sector and the roughly 1,640 jobs it creates in Erith and Thamesmead.

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Erith and Thamesmead see unprecedented 2% unemployment rise

Unemployment has risen to unprecedented levels across the UK with Erith and Thamesmead seeing a rise in unemployment to 5.6% of the adult workforce, just above the average figure for the whole of London and the wider UK.

Centre for Cities, an independent research organisation, has been recording the rise in unemployment rates across the UK between March and April. Data recording the number of people applying for Universal Credit and Job Seekers Allowance shows and increase in unemployment of 850,000, taking the UK wide total to 2.1 million.

Between March and April 2020, an increase of 1,605 people applied for Universal Credit or Job Seekers Allowance in Erith and Thamesmead, a rise of 2%. The Royal London Borough of Greenwich has been affected slightly more than the London Borough of Bexley with a 0.2% higher uptake in this time period.

It is expected that the unemployment rates are likely to have risen between April and May but this data is not yet known. There are also disparities in the unemployment increases in different areas of the UK. London has an average unemployment rate of 4.9% compared with 5.6% in Erith and Thamesmead and 8.9% in Blackpool.

The reasons for differing increases in unemployment are not yet known but it is suspected that places that rely heavily on the most impacted industries such as hospitality, and where people are unable to work from home, have seen a greater impact.

In a letter to the Secretary of State for Work and Pensions to raise concerns about the rise in unemployment locally, I said:

“I am concerned that residents in Erith and Thamesmead will face increased difficulties compared to the wider region of London post-Covid-19 due to decreased local job opportunities and restricted travel routes around London. It is already evident that my constituents have felt more severe impacts compared with the rest of London, as unemployment has risen 0.7% higher than the London average.

Many local businesses have contacted me throughout this crisis detailing their financial hardship and inability to access the SEISS or Job Retention Scheme. As more businesses fall into financial hardship residents in Erith and Thamesmead will be faced with more job losses.

If the working age population in Erith and Thamesmead is going to recover from this crisis there will need to be a specific focus on boosting the local economy, improving transport links and supporting industries that have been hit particularly hard.”