‘Pay it forward’: Residents urged to buy items in advance from struggling local businesses

A new scheme from City Hall allowing customers to purchase items in advance from businesses forced to close as a result of the pandemic has been welcomed as a potential lifeline by the hard-hit hospitality and retail sectors.

Hackney’s local London Assembly Member Jennette Arnold OBE AM encouraged residents to take part this week, with items purchased through the scheme available for collection once businesses re-open.

Mayor of London Sadiq Khan last week promised £1m to be invested into business support, while Hackney Council warned Chancellor Rishi Sunak weeks ago that many businesses are ineligible for the raft of support measures put in place to help them through the crisis.

UK Hospitality CEO Kate Nicholls said: “Hospitality businesses were the first to be hit hard by social distancing and the lockdown, and will feel the impact long after other businesses begin to reopen. Any help we can give them in the meantime will be vital.

“’Paying it forward’ will provide very valuable breathing room and revenue to pay bills, and keep livelihoods and venues afloat. This valuable source of revenue will be critical for protecting jobs, right now and as businesses begin to open once again.

“It will mean that more restaurants, bars, hotels and pubs will survive and will be there to serve their communities once we get back to normal.”

Hackney Mayor Philip Glanville warned at the beginning of the month that 7,000 local businesses could be forced to close as a result of being unable to access support, including those with a rateable value above £51k, workspace providers and their tenants, creative, arts and cultural sector businesses, and self-employed limited company owners.

The scheme can be accessed through the London.gov website, with small and medium sized businesses (SMEs) able to seek advice tailored to them through the London Growth Hub.

Assembly Member Arnold said: “It is of course only right that the government have extended the lockdown period to push back this devastating virus and minimise the possibility of another outbreak.

“In the midst of this, we must remember that many small and medium businesses in the community, who have closed their doors in the interests of public health, are struggling with their rents, bills and a lack of cashflow.

“As Londoners, we can provide a helping hand to these businesses. City Hall’s new ‘Pay it Forward’ scheme provides the perfect opportunity for this and could play an important role in aiding the gradual recovery of our high streets and local economy.”

More information about City Hall’s new ‘Pay it Forward’ scheme can be found here.

Hackney Council business support and advice can be found here