""We need something to get it moving," he said. "The market is broken. It is not going to be able to repair itself if it's not investable.""
""I speak to friends in private equity and fund management, and they all say the same thing: we can't see an exit, so we won't enter," Marks said. "That means businesses can't refinance, assets aren't trading, and the sector risks becoming stagnant.""
A veteran nightclub operator called for a Covid-style government loan guarantee scheme to unlock investment in a hospitality sector suffering from poor access to finance and rising costs. The finance market for hospitality is described as effectively broken, preventing asset transactions and deterring new investment. A targeted state-backed guarantee underwriting up to 80% of bank loans to larger hospitality businesses on commercial terms is proposed to encourage banks back into the sector and restart debt flows. Investors have withdrawn amid exit uncertainty, higher employment and tax costs, and weak consumer spending. Long-term decline in SME bank lending and limited non-bank lender substitution exacerbate the problem.
Read at Business Matters
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