Government urged to deliver tailored support amid threat to thousands of jobs in recreational sport
Thousands of jobs in recreational sport “remain under threat” under the replacement for the Coronavirus Job Retention Scheme, the Government has been warned.
Chancellor Rishi Sunak stood accused of failing to go far enough to rescue the sector after announcing a new Jobs Support Scheme (JSS) – which will subsidise the pay of employees working fewer than normal hours – and the extension of other Covid-19 grants and tax breaks.
Huw Edwards, the chief executive of ukactive, which represents 7,000 gyms, leisure centres and swimming pools, as well as 200,000 staff, said: “We welcome the measures announced today by the Chancellor, which will provide some relief to the fitness and leisure sector. However, we must now see urgent tailored support for our survival.
“The new Job Support Scheme and extension to the Self-Employed Income Support Scheme is important, but with many workers still on furlough, thousands of jobs remain under threat and we await more detail on these areas.
“The extension of Government-backed loans schemes, and changes to the terms of repayment for Bounce Back Loans and Coronavirus Business Interruption Loans, will help with cash flow, alongside new payment schemes for deferred VAT.
“However, we cannot have a situation where once again hospitality and tourism are prioritised over the fitness and leisure sector, which to date has received no tailored support despite being forced to close for a prolonged period during lockdown.
“Our sector requires a complete support package that not only includes core funding, but also stimulus including VAT relief and ring-fenced funding for public leisure operators.
“There is no trade-off between health and the economy when it comes to investing in our sector, and we will continue to work urgently with the Government to ensure our members get the support they need.”
The chairman of Tranmere Rovers also warned the JSS “doesn’t make an impact” on football clubs at risk of going bust.
Mark Palios told the Daily Telegraph his club would “probably take advantage” of the scheme but said it would make little material difference to those whose biggest earners by far were players – who he expected to be ineligible for the scheme.
“It’s helpful but it doesn’t make an impact in the context of lower-league clubs whose biggest wages costs will be the players’ wages costs and the football staff’s wages costs,” said Palios, who confirmed Tranmere still had staff on furlough.
Clubs were allowed to furlough their players when football was suspended in March but could only claim a maximum of £2,500 per month per employee. They also had to remove those players from the scheme when the game resumed.
An even lower ceiling of £697.92 per month applies under the JSS, which will see the Government top up the wages of employees working at least a third of their usual hours.
Palios expected players to be ineligible due to the difficulty defining what constituted their usual hours.
