THE GOVERNMENT hasn’t thought about an exit strategy for lockdown.That’s the concern for Colin George, who helps run Wokingham Business Association.
Mr George is worried that the amount of debt accrued during this time could collapse companies across the town centre, and is calling for people to prepare ahead.
“I’m fearful for the town,” he said. “I don’t think anyone has sat down and considered the consequences of lockdown.
“After all of the funding help has stopped, and payment holidays have ended — that’s when it will all start unravelling.
“The town centre has so many bars and coffee shops. They won’t be able to be profitable and maintain social distancing measures.
“The overheads are so high, they kill businesses quickly and the debt just grows.”
But the leader of the Wokingham Town Council, Cllr Imogen Shepherd-DuBey said she thinks the town will be in a good position post-lockdown.
“The supermarkets are doing well, and takeaways are doing what they’ve always done,” she said.
“Many of the town and borough council tenants have been given a rent deferral and I know that two thirds of those eligible for the small business grants have applied for them.”
Cllr Shepherd-DuBey added that businesses are still primed to move into new shopping units from the town centre redevelopment programme.
“There are still businesses signed to move into Elms Field,” she said. “The shops are ready to go and people are ready to move into them when they can.
“And those that only recently moved into Elms Field are still in a supported state right now.
“I think Wokingham is in a good position to come out of this quite well. Although it will likely be a long time until we are allowed to go out and sit down in a restaurant. And a very long time before we can go to the pub.”
Mr George said he is also concerned about the borough council’s finances.
“When the borough council bought Denmark Street car park, the income from tickets and the rent from shops would have paid for the loan. It was self-financing.
“But now the council has to find the money to service that debt. And all the other money they’ve borrowed.
“It’s all been done on cheap finance. Although it’s cheap, it needs an income to service the debt.
“I can see an awful lot of problems facing the council in the future. They need to put their heads together to plan to keep things afloat.”
But the leader of the borough council said the damage to their accounts won’t be fatal.
Cllr John Halsall said: “We look at the numbers everyday, and we’re factoring in the two payments from the Government and one from CCG.
“It’s a ship in rocky waters butit’s solid. It all depends on what happens and how long for.
“No doubt there will be damage to our accounts. And we’re not anticipating the Government to pick up every cost. There will be damage but it won’t be fatal.”
And Cllr Shepherd-DuBey added: “In terms of car parking, the income stream is not like in Windsor and Maidenhead next door, who get millions each year due to tourism. It makes up part of the borough council’s income stream but it certainly isn’t the biggest.”
