Following a recent member survey, figures released by BACTA have shown a drastic loss of revenue for family entertainment centres in the UK, among other worrying statistics.
The survey also showed significant falls in revenue for other sectors, with drops of 71.4 per cent, 55.9 per cent and 59.1 per cent for pub suppliers, AGCs and manufacturers and distributors respectively.
“We carried out the survey in order to illustrate to Government that we require additional support now in order to keep our members’ businesses from going under,” said John White, BACTA CEO. “We need a five per cent VAT rate from the Treasury and have met with them to discuss this in a positive meeting last week. There must be an extension of rates relief and in particular we must ensure the supply chain benefits from any support available. We are also asking for an assurance that AGCs will be able to open in Tier 3 in due course.”
Job losses are also a concern, with FECs hit hardest at 16.2 per cent.
“Interestingly the job losses, whilst still horrendous, are nothing like the prospective job losses we forecast before the extension of the CJRS, which were on average around 50 per cent of the workforce,” White said. “The CJRS has definitely saved jobs and will continue to do so if it remains in place in some form as the economy gets going again.
“It is shocking how high continuing costs are, as a percentage of the business costs faced during a ‘normal’ year. Despite cost cutting, the on-going cost base is very high and can only be met from reserves or loans in the absence of any revenue. Businesses are running on fumes and many have said to me that they probably have not many more weeks left before they will go under."
