Commenting on the Chancellor Rishi Sunak’s latest announcement, Will Hawkley, UK head of leisure at KPMG, said:
“With the ‘Eat Out to Help Out’ initiative already a distant memory, the Job Retention Scheme fast unwinding and COVID-19 re-engaging its firm grip on the nation, the leisure and tourism industry has understandably been feeling uneasy, if not left questioning its survival prospects. Depressed demand during the autumn and winter months – both within leisure and tourism – presents its own issue, with the addition of further social distancing restrictions amplifying the challenge.
“While the Chancellor may have demonstrated that the sector’s woes haven’t been overlooked, most businesses are likely to conclude that the extension of the VAT cut and the latest job support measures don’t go far enough. As things currently stand, those that can quickly adapt and evolve their operating models in line with the restrictions will be more successful. Sadly, not all operators will be able to survive and further job losses will be inevitable without further Government support.”
Will Wright, head of regional restructuring for KPMG, added: “The sense of foreboding in the hospitality sector over the last 48 hours is palpable. Aggressive planning for all scenarios is now back on the table, with yet more CVAs and administrations having to be considered if operators are to survive over the winter months.”
Notes to Editors
For additional details, please contact:
Simon Wilson, KPMG Corporate Communications:
T: 0207 311 6651 / 07785 373397
KPMG’s Press Office: +44 (0)207 694 8773
About KPMG in the UK:
KPMG LLP, a UK limited liability partnership, operates from 21 offices across the UK with approximately 17,600 partners and staff. The UK firm recorded a revenue of £2.40 billion in the year ended 30 September 2019. KPMG is a global network of professional firms providing Audit, Tax, Legal and Advisory services. It operates in 154 countries and has 200,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
© 2020 KPMG LLP a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.