324,000 jobs within the UK’s hospitality supply chain are at risk unless “businesses receive immediate financial support from the government”, according to UKHospitailty.
The statement comes as part of research conducted by the group, where it was found that one in five jobs in the supplier workforce have already been lost, and one in three businesses have not received a government grant or loan.
It is now believed that hospitality venues will need to return to 59% of normal trading levels to make supplier services viable.
To prevent further losses, UKHospitality is now urging the government to use the forthcoming March Budget to ensure that “supplier businesses receive the necessary financial support”.
These measures include a national grant fund for the hospitality supply chain to allow “viable businesses to invest in goods/services critical to a successful restart”.
In addition, the group has also called for a “government-backed invoice factoring scheme to free-up funds for investment and mitigate some of the risk of trading through the restart”.
Kate Nicholls, UKHospitality chief executive, said: “The totality of hospitality is dependent on its supply chain. If supplier businesses fail, then the entire sector grinds to a halt and we are at risk of the whole thing collapsing. We are hopeful that hospitality businesses can lead the recovery of the UK’s economy this year.
“That cannot happen if businesses are not supplied to do the job. The supply chain is everything and it must be supported.”
She added: “The government has to understand this and provide the support that these businesses desperately need at the Budget. Otherwise, our sector will rapidly become a house built upon sand and the terrible damage that has been felt over the past twelve months will only be compounded.”