'Business rates paid by supermarkets should be reinjected into struggling businesses in Leamington, Warwick and Kenilworth' says MP

Business rates paid by supermarkets should be reinjected into the struggling hospitality sector in Leamington, Warwick and Kenilworth.

That is the view of Warwick and Leamington MP Matt Western, who is calling for urgent support for small businesses with Warwickshire remaining under tier 3 restrictions.

After a rise in cases, Warwickshire learned last Thursday (December 17) that it would remain in tier 3 under the strictest COVID-19 restrictions following a government review.

Mr Western says there are over 100 businesses in Leamington alone with rent that needs paying and jobs at risk.

In response, Mr Western has called on the government to use more than £2billion in business rates paid by major supermarkets to bailout smaller traders.

Supermarkets waived their business rates relief and paid in full after an outcry over the size of shareholder dividends as COVID-19 heavily damaged smaller firms in the hospitality sector.

Mr Western has also pledged support to the aims of the Bounce Back Better campaign which has outlined a package of measures to save businesses amid tier restrictions.

These include 100 per cent discount on business rates, one-off grants and VAT fixed at five per cent for hospitality.

Mr Western says he is disappointed Warwickshire wasn’t placed in tier 2 a fortnight ago when cases were significantly lower.

But he also acknowledged the spike in cases it may have led to.

He said: “A fortnight ago, with case rates looking extremely promising for Warwickshire, it seemed inconsistent and misguided for us to be placed in tier 3 along with worse performing areas.

“And as a result, our hospitality sector suffered a devastating loss of revenue during its most crucial fortnight of the year.

“Following last week's review, it is now essential that the government steps in to support hospitality – with many businesses in my constituency fearing for their future and feeling let down.

After conversations with business owners in his constituency, he says many claimed it would have been too late to move into tier 3 this week - with the costs of reopening outweighing potential revenues.