Hospitality and event industry receive extra support from cabinet | NOW

The third support package is being expanded due to the flaring up of the corona virus. The catering industry and several hundred event entrepreneurs will receive a one-off compensation for lost income. The fixed costs allowance (TVL) will be expanded so that more sectors can make use of it.

Ministers Eric Wiebes (Economic Affairs), Wopke Hoekstra (Finance) and Wouter Koolmees (Social Affairs) announced this on Tuesday.

The cabinet is allocating a total of half a billion euros for the extra support. “We can afford this”, assured Hoekstra. “But it is still money that we have to borrow and pay back later.”

The catering industry will receive compensation for the stock that has been built up and is now unusable due to the temporary closure. It is also compensation for the costs incurred by cafes and restaurants to make their business corona proof. This concerns 2.75 percent of the lost turnover, on average the cabinet thinks that this amount will amount to 2,500 euros per entrepreneur.

More companies are getting compensation

The fixed costs allowance (TVL), together with the wage subsidy (NOW) and self-employed person (Tozo), the most important lifebuoy, will be expanded.

It was only intended for sectors that were directly hit hard by the corona crisis. Now suppliers are also being compensated for this. Initially, the cabinet wanted businesses to resolve this among themselves, for example by making agreements about rent reduction.

“In this situation, we still think it is justified to expand this scheme,” Wiebes now says in an explanation.

Because many music events and fairs did not take place, these entrepreneurial sectors also receive extra benefits.

This is a one-off payment based on lost income from last summer. The cabinet thinks that it concerns about eight hundred entrepreneurs who receive an average of 14,000 euros.

There will be a so-called Time Out Arrangement, a kind of hibernation for companies. As long as the economy is (partly) locked, companies do nothing, measures are relaxed again, they can open.

Companies that are fundamentally healthy do not have to file for bankruptcy. This plan is being further elaborated.

Support package overtaken by the virus

The third support package will run from October to June 2021. The measures have only been overtaken by the virus. The infections and the number of hospital admissions are increasing so quickly that the cabinet has taken extra measures (partial lockdown).

This only pushes entrepreneurs further into trouble, making the call for extra support for sectors that have been hit hard, such as the hospitality industry, culture and events, growing louder. The package was already designed in such a way that more loss of turnover also means more government subsidy.

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