NEWS
CYBER CRIME
Some independent food retailers could ‘fall through the cracks’ of government funding By Greg Pitcher
Many independent food retailers faced an uncertain start to this year after fresh government measures to tackle COVID-19 deprived them of business and failed to guarantee them financial support Firms reliant on passing trade, events and close interaction with customers were dealt yet another blow when prime minister Boris Johnson effectively closed most schools and offices and ordered people to stay at home from Monday 4th January until at least February half-term. Chancellor Rishi Sunak announced that retailers required to close their doors would be able to claim up to £9,000 per outlet due to the latest lockdown but this left question marks over the support available for firms allowed to stay open. A further £594 million in discretionary funding was made available for councils to distribute to businesses not eligible for the grants but food specialists were left wondering how and when they were likely to see any of that cash. Sangita Tryner, owner of Nottingham-based Delilah
Lockdown has caused an even-quieter-than-usual start to the year
Fine Foods, said the shop would usually be “buoyant” in January as office workers came in for catered meetings and shoppers dropped by during visits to the sales. “These next few months are going to be dire,” she said in early January. We are currently open five days a week but mainly housekeeping – if we get five customers in a day we are lucky.” Tryner was hoping to get hold of a slice of the discretionary funding announced by Sunak but said patience and relationship building were critical.
FINANCIAL SUPPORT AVAILABLE meaning employers can Cash grants furlough eligible staff
Retailers forced to close as a result of the third national lockdown at the start of this year can apply for a one-off payment of up to £9,000 per property depending on their rateable value. A further £594 million “discretionary funding” has been provided to devolved administrations and English councils for firms remaining open but hit by the restrictions.
Furloughing employees
The Coronavirus Job Retention Scheme has been extended until the end of April 2021, 6
and claim 80% of their usual salary for hours not worked, up to £2,500 per worker per month. For periods from 1st November 2020, firms can claim for employees who were employed on 30th October 2020 and meet related PAYE submission criteria.
Business rates relief
Shops in England do not have to pay business rates for the 2020 to 2021 tax year however they currently remain liable to pay the levy in the 2021/22 period that begins on 6th April.
January-February 2021 | Vol. 22 Issue 1
“It is not enough but it is something,” she said. “We are working closely with the council and received a grant in the past. It doesn’t come knocking; I didn’t hear for months. Be resilient and build up your contacts.” Daniel Williams, project manager at Cheshire’s Godfrey C Williams & Son, said the high street in Sandbach was “virtually empty” in early January. Business was impacted in several ways by the lockdown, he added. “We no longer cut cheese in the front of the shop during opening hours, and I no longer roast coffee with
Business Interruption Loan
The Coronavirus Business Interruption Loan Scheme is open until the end of March. It allows companies with turnovers of up to £45 million to access governmentbacked sums of up to £5 million without paying interest or fees for the first year. Companies need to show that they would be viable if it not for the pandemic and that they have been affected by COVID-19.
Bounce Back Loan
This scheme helps small and medium-sized
customers or even staff in the shop. I’m expecting cheese wedding cake orders and appointments to remain in a state of flatline and virtually all of the bars and restaurants we supply have closed entirely.” Independent food retail could fall through the cracks in the government support package, he added. “I am unsure as to whether we are eligible for the local authority grants. An extension of the business rates holiday would be of more value to us.” Meanwhile, financial consultancy Blick Rothenberg said an extension of two loan schemes (see box) designed to support businesses during the lengthy pandemic was “just a sticking plaster”. Partner Richard Churchill said: “Access to the money is no longer quick and many businesses face weeks of battles with their bank to access the funds.” Sunak said in January: “Throughout the pandemic we’ve taken swift action to protect lives and livelihoods and today we’re announcing a further cash injection to support businesses and jobs until the spring.” businesses to borrow between £2,000 and up to 25% of their turnover up to a maximum loan of £50,000. The government guarantees 100% of the loan and there are no fees or interest to pay for the first 12 months. The scheme is open to applications until 31st March 2021.
Local Restrictions Support Grant
Businesses that did not have to close but were severely impacted due to local Tier 2 or Tier 3 restrictions are eligible to claim support through this scheme for periods before the national lockdown came into force. Enquire to your local council.
IN BRIEF A new London food hall –Walter The Stratford Grocer Smith Fine Foods & Co – is set to open has announced the in the spring on the ground closure of three stores floor the Gantry in theof Midlands. TheHotel, Stratford, and revealed is offering butcher chain an online nationwide over Christmas that its delivery serviceWest in the Denby Village, meantime. Camden Bromwich and Coventry Grocer founders shops would stopScott trading, Winston Bunch– leaving itand withMatt 11 outlets are behind the are brand. many of which within garden centres. stratfordgrocer.com Tracklements hassaw UK supermarkets hired Ben Hallam for record-breaking sales theDecember, role of commercial in fuelled by manager, which includes coronavirus restrictions. identifying new market Customers spent opportunities. Hallam £11.7bn on food and joins the Wiltshire-based drink in December, the condiment specialist largest month of salesafter for 11 yearsever, at dairy firm Yeo grocers according Valley. to research by Kantar. HealthBounds, food retailer Laura owner of Planet Organic Kent Crisps, hashas been moved into hot awarded anthe MBE forfood delivery market and services to international teamed up with high-end trade. Kent-born 34-yearservice Supper, which old Bounds’ nomination will courier a selection was in recognition of of to-go sushi her workitems doneand to raise from two Central London awareness of Kent on the stores.stage. world kentcrisps.com
Industry veteran set to retire After some 44 years in the fine food world, The Fine Cheese Co’s Dean Lord has announced his retirement. Ever-present at trade shows and always on an immaculately dressed stand, Lord left school in 1977 and set off on a career that has also seen him take on roles at Petty Wood, Cottage Delight and The Bay Tree Food Co, as well as his most recent role as key account manager at The Fine Cheese Co. “I will now be able to attend shows as a visitor and actually look around one,” he told FFD. FFD wishes him all the best for the future.