Call for deferral on payments for flood-hit businesses

By James Wilmore

- Last updated on GMT

Related tags Tourism Bha Bob cotton

Pubs and other hospitality and tourism businesses affected by the floods should be given a six-month deferment on VAT, national insurance and...

Pubs and other hospitality and tourism businesses affected by the floods should be given a six-month deferment on VAT, national insurance and business rate payments, a trade group has urged.

The British Hospitality Association (BHA) is also asking the government to write to the banks and utilities to request that they do not press for payment on outstanding amounts at what it describes as "this catastrophic time."

"The floods have caused as much damage to affected businesses as the foot-and-mouth epidemic in 2001," said Bob Cotton, the BHA's chief executive.

"The government was quick to offer similar assistance to businesses then and we are asking that it should step in now to alleviate the pressure on those affected.

"Not only have the floods come at the height of the domestic holiday season, but the damage caused will take many months to recover from."

Mr Cotton said that the floods had not only affected large areas of the country where tourism was a main economic driver but that some hotels, restaurants and tourist attractions will have to stay closed for many months in order to repair the damage caused.

They needed support from the government, the utilities and the banks in order to conserve cash flow and to recover.

Mr Cotton, who is due to have a meeting with Hilary Benn MP, Secretary of State for the Environment, Food and Rural Affairs tomorrow, said that government support and understanding by banks and utilities had enabled the industry to recover significantly more quickly from the foot-and-mouth epidemic than it would otherwise have done.

"We believe that the floods pose just a big a danger now as businesses faced in 2001," he said.

"Government support is essential."

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