The AVA is calling on the UK government for renewed and further support to help vending operators and their direct supply chain to survive the pandemic as research shows one in five jobs in the sector could be at risk.
The AVA’s appeal to HMG in for urgent support for operators so that they to continue their work. Expressly, an extension of the Coronavirus Job Retention Scheme (CJRS) for hospitality businesses and specifically vending companies, or an increase in the level of Government support to the Job Support Scheme beyond the current 22%, purely for the Hospitality and Foodservice industry.
The AVA has also asked the government to consider an additional financial grant to cover a percentage of lost revenue during the crisis or the removal of Employers NI and employee pensions payments, with an increased contribution towards paying people to work.
Since the initial lockdown in March, vending turnover has plummeted to an average of 34% of its previous level and over 60% of the workforce were furloughed.
‘The COVID-19 pandemic has had a devastating impact on the hospitality industry, but it is vital that vending is not forgotten’, AVA Chief Executive, David Llewellyn said. ‘The impact of the virus may not be as immediately obvious on Out of Home and Foodservice industries such as vending, but as the government advises people to stay at home and places more restrictions on movement, our industry will be seriously damaged without further support.
‘We are calling for urgent support from the Government to help vending companies and the direct supply chain, to ensure that we can navigate this pandemic and our members can continue to operate throughout, and into the future.”
David is recommending that AVA members do what they can to assist in this important lobbying effort, by sending a similar letter to The Chancellor. The letter follows: all you have to do is cut, paste and send.
To: The Rt Honourable Rishi Sunak MP
Chancellor of the Exchequer HM Treasury
The Correspondence and Enquiry Unit
1 Horse Guards Road
London SW1A 2HQ
My company is a member of the Automatic Vending Association (AVA), the Trade Association for the vending industry, representing machine and ingredient manufacturers and suppliers, cup manufacturers and vending machine operating companies throughout the United Kingdom.
The UK vending and unattended retail industry has an annual turnover of £1.6bn and a tax contribution of around £400m a year. It is an industry employing 24,500 people directly, which is supplemented by those employed within the wider vending channel supply chain.
Vending Operating companies like mine, which supply, fill and maintain vending machines, providing food, soft drinks, water coolers, hot and cold beverages and snacks are, with one or two exceptions, small or medium sized enterprises, often family owned. Over 70% of the equipment sited and operated by AVA members is in the Business and Industry sector. The impact of the varying guidelines which have been put in place since initial lockdown in March have had a devastatingly negative impact on our business. As people were directed to work from home where they could, turnover plummeted to an average of 34% of its previous level; over 60% of the workforce were furloughed.
The Prime Minister’s exhortation for people to return to work was beginning to have a positive effect. But the swift about-turn on this advice stopped progress in an instant. Rates relief and the various loans available have provided a ‘sticking plaster’ for many AVA members. Some are just about managing to keep going, but many will not, especially those who provide services to city centre offices and businesses where employee numbers have dropped dramatically.
As we approach the end of the Coronavirus Job Retention Scheme (CJRS) and as restrictions on movement determine by the three tiers begin – and its impact on those not going in to work – there will be many redundancies. The AVA’s research currently predict that the jobs of up to 25% of all employees – over 6,00 – are in imminent danger.
With your proposed support for those hospitality businesses forced to close or impacted by Tiered restrictions, we would implore you not to forget the Out of Home and Foodservice industries –and specifically Vending. The impact may not be as immediately obvious, but as with all Hospitality, Foodservice and Catering outlets, advising that people stay at home and placing more restrictions on movement will devastate our industry.
As an AVA member, I am asking you for your for urgent support to help vending companies and our direct supply chain. To achieve this, we need:
- An extension of the CJRS for hospitality businesses and specifically vending companies.
2. Or, an increase in the level of Government support to the Job Support Scheme beyond the current 22%, purely for the Hospitality and Foodservice industry.
3. Or, Financial grant support to cover a percentage of lost revenue during the crisis, to enable these SME’s to hold on to their skilled workforces whilst waiting for the post-pandemic recovery.
4. Or, Removal of Employers NI and employee pensions payments and an increased contribution towards paying people to work. We look forward to hearing from you.
YOUR NAME, YOUR TITLE.
|For UK||For Home Countries|
|Contact details for Rishi Sunak are:|
The Chancellor of the Exchequer
|Nicola Sturgeon MSP:|
First Minister of Scotland,
69 Dixon Road,
The Right Honourable Rishi Sunak MP
Chancellor of the Exchequer
House of Commons
|Mark Drakeford MS|
First Minister of Wales
|Contact details for Boris Johnson are:|
The Prime Minister
10 Downing Street
|Arlene Foster MLA|
First Minister of Northern Ireland
Room 310, Parliament Buildings,
The Right Honourable Boris Johnson MP
House of Commons