The Government will approve a 50% reduction in the rent of bars and shops on Tuesday

The discrepancies within the Government exhausted the time for the rescue plan to be ready before the end of the year.

A waiter serves an empty terrace.

The Government will approve this Tuesday a mandatory 50% discount for large property owners in the amounts of rental of premises for hospitality and trade. A measure that could be accompanied by others after having left the project in the drawer in several of the last Councils of Ministers.

The draft that the Ministry of Industry, Commerce and Tourism is finishing will include, except for modifications, tax incentives for those who are not large holders -owners of less than ten urban premises- and lower the rents established in their contracts, according to what ministerial sources have advanced this Saturday.

After successive delays in the approval of a broader package of measures due to discrepancies within the Government, ministerial sources point out that at least this measure is it will go ahead next Tuesday to enjoy a greater consensus. In this sense, one of the keys is that it does not imply an expense for the public coffers.

collapse in billing

The reduction in the rental price of the premises would be for the period of state of alarm and provided that there has been no agreement between the parties that had already introduced a modulation in rents. The impact on the public coffers, which is estimated to be very limited, would come from the tax exemptions for small owners, if they are finally part of the approved rule.

While a more ambitious rescue plan comes to light, the hospitality sector has already done its numbers and calculates that will close the year with a 50% drop in turnover. A percentage that, according to the Hospitality accounts in Spain, translates into a drop in revenue of 67,000 million euros.

The president of the aforementioned employers’ association, José Luis Yzuel, indicated in statements to Invertia a few days ago that for each week of delay in the approval of aid measures the losses would add about 6,000 million euros. And we must not forget that initially the plan for the sector was scheduled for approval at the end of last November, a date from which it has been successively delayed.