Support needed for rural tourism and wedding sectors

Many rural businesses in the East of England have diversified their traditional farming enterprises over the years to broaden their assets, with some taking the route of transforming redundant farm buildings and barns into spectacular wedding venues.

All sectors of hospitality have been battered by the impact of Covid-19 and the subsequent restrictions that have adversely affected their businesses. However, the wedding industry, which is worth £14.7bn a year in the UK, has often missed out on the raft of financial packages, with support not tailored to their needs.

The CLA briefed MPs in rural constituencies on the economic impact felt by the wedding sector ahead of a debate in Parliament about the impact Covid-19 has had on hospitality.

Around 200,000 weddings have been delayed or cancelled since March 2020 - a heavy blow to the sector. And this isn’t just an issue for venues either - the supply chain extends to caterers, florists and photographers to name a few.

So, what can the Treasury do? Unfortunately, there isn’t a quick fix to get weddings back on their feet. The peak season is generally only for a few months between April and September, and there is now a significant backlog of couples who have already had to place their day on hold. But there are areas in which pressure could be relieved.

The CLA has outlined several key areas of support to politicians, including business rate relief. The government was quick to defer business rates in 2020, but these are due to resume at the start of the new fiscal year. However, many businesses in the wedding sector are unlikely to make any income before April. The CLA is calling for the deferment to continue and a sensible repayment framework to be introduced, where possible, to prevent businesses from disappearing.

There have also been frustrations from many venue owners unable to claim insurance payments for business interruption but still paying out refunds to couples. The government must be clear with the insurance sector on these valid claims.

Meanwhile, the CLA is calling for the 5% VAT rate for tourism to be made permanent and for the government to produce a roadmap to economic recovery.

The budget, which is due to be set in March, is likely to be focused on the pandemic and how to restart the economy. Our submission to the Treasury, which sets out the policies and priorities that we want the government to consider ahead of the budget, ensures that the rural economy will not be left behind in this economic recovery.

Tourism and hospitality remain a staple of the rural economy. However, with revenue losses estimated at £20bn in 2020, it is clear that the sector has a long path to recovery.

The CLA is calling for the 5% rate of VAT for tourism, which is due to come to an end in March, to be made permanent. This will encourage UK holidaymakers to holiday at home this year when it is safe to do so and gives these businesses a more level playing field to compete with international destinations.

The schemes put in place to aid businesses during the pandemic, such as the furlough scheme, business interruption loans, business rates and payment holidays, have been a lifeline. This help mustn't be snatched away overnight once the economy starts to open up again. This support needs to be tapered off to allow rural businesses to start making a profit before having to worry about repayments.

There needs to a period of stability after what I think everyone would agree was a traumatic year. We are urging the government to produce a roadmap to recovery to allow businesses to plan and adapt for the future.