Message from Manor Royal BID

Hear from Steve Sawyer, Executive Director of Manor Royal BID, below about the support Manor Royal BID are currently providing alongside Coast to Capital LEP.

 

Continue reading for more on the impact that COVID-19 is having on local businesses.

Message from Steve Sawyer, Executive Director of Manor Royal BID

 

About Manor Royal Business District

The Manor Royal Business District is one the UK's largest business parks, covering an area of 540 acres and accommodates over 9 million square feet of commercial floor space, from offices to industrial warehouses and factories. Over 600 business are located in Manor Royal, providing jobs for 30,000 people operating from over 750 business units.

It is a hub for a variety of core business activities including manufacturing, pilot training and simulation, medical devices, transport & logistics, wholesale activities plus a variety of professional, information communication, administrative services and HQ functions.

Manor Royal facts and figures:

• Generates £34 million in business rates
• Accounts for over a third of all Crawley jobs
• 63% of Crawley's commercial floor space offering
• 25% of all business rates collected in the town
• Estimated to make a fiscal contribution of £207 million per annum

The health of Manor Royal is intrinsically linked to Crawley's overall health and the health of the wider economy and people's livelihoods, including 18,000 people who commute from outside of Crawley to Manor Royal for work.

COVID-19 Impact on Manor Royal

The initial impact on Manor Royal based businesses is varied, reflecting the diverse nature of the business district. Some companies are still busy and trading well, for instance companies operating in the medical sector, logistics companies, and essential retailers. Albeit all have had to make adjustments to respond as far as possible to guidance on social distancing.

However, there are many companies who are facing significant financial difficulty for whom their very future is under threat. The support put in place by the Government is either of little or no use. And without further help, otherwise healthy, viable and active businesses, will be forced to close with the subsequent loss of jobs and wider economic impact.

Support for Manor Royal

The majority of the initial response by the Government has been concentrated on Retail, Leisure and Hospitality businesses, who are predominantly based on the high street and within town centres. These businesses can benefit from Government help with business rate holidays and grants. However, this leaves limited Government support (if any) for those businesses away from the high street and based in places like Manor Royal.

Companies in Manor Royal are at a further disadvantage for Government support, due to the decision to use rateable values as a criteria to judge qualification for financial help; as rateable value bears no relation to the success of a company, its health, productivity or profitability. Therefore, local business people and entrepreneurs are being penalised for operating from larger premises. In these cases, companies are having to bear the cost of higher rents (often with no help from landlords), higher rates (with no help from Government) and are further compounded by not operating in Retail, Leisure or Hospitality.

Other than the option of furloughing staff while having to remain closed, companies can apply for the Business Interruption Loan. However, this is not helpful for small business owners, and in the long term saddling companies with more debt will be a drag on recovery and threaten the future viability of businesses.

Research from the Corporate Finance Network (01 April 2020) estimates that 18% of SMEs could go bust within weeks and 32% within months and that loans to these companies, interest free or not, is not the kind of support they need. This is true of a number of Manor Royal companies we have spoken to. We are at risk of losing those companies who feel over-looked by Government. Approximately 98% of all companies in Manor Royal, and Crawley, fall into the SME category.

Conclusion

Whatever alternative arrangements are made, if any, some level of business closure on Manor Royal seems likely. However, this figure is likely to be higher if companies cannot access further support.

 

Manor Royal BID

 

The Manor Royal BID is the largest "industrial" BID in the country. It was formed in 2013 and subsequently renewed with an improved mandate at the Renewal Ballot of 2018. Its aim is to support the businesses and employees and to "improve the trading and working environment of Manor Royal".

Find out more online at www.manorroyal.org/covid19