RENTS and rates remain key concerns for York businesses ahead of tomorrow’s budget - but the city has cause for optimism, says a leading figure.

Andrew Lowson, executive director of the York BID, said the Chancellor’s plans would be "crucial" for injecting hope.

Many businesses were taking stock and preparing for a trading environment in 2021 which shared parallels with 2020, he said. Rent and rates remained a concern, with tenants worried about cashflow and landlords focused on paying commercial mortgages.

“Businesses may be exempt from eviction, but that has not stopped difficult discussions/ disputes behind the scenes.”

Highlighting the pandemic’s impact on the supply chain, Mr Lowson said many micro businesses had also suffered, ineligible for grants and devoid of income.

However, York’s professional, digital and creative services had reported positive trading figures for the end of 2020, as demand for services and their ability to move to home working allowed for continuity.

For retail and some hospitality, York’s Tier 2 status in December had also provided some trading. Though footfall was down it was higher than the national average.

The rise in online shopping due to lockdown and tier restrictions was reflected in Visa data, with residents in York city centre spending £9 million in the first quarter of 2020, rising to £62 million by the fourth quarter.

Mr Lowson said this would have a lasting legacy and raise growing concerns for high streets - but local independents had reported good online trade and realised this diversification would be integral to their business.

“Whilst no-one is high-fiving, York performed better than other cities,” he said.

He expects the staycation market to be strong in 2021, adding: “York will benefit.”

Mr Lowson said York did well last year, with the extension of footstreets and pop-up outdoor seating, while businesses put in place Covid-secure procedures.

Responding to reports that ‘experiential leisure’ will be crucial to the high street, he added: “York already has this in droves and with this solid base, we can look at planning decisions on York Central, Castle Gateway and the station frontage with enthusiasm and be grateful we have the regeneration projects that can bring optimism and investment. I think we all know that 2021 is going to be another difficult trading year, but if we take the learning from 2020 and focus on the future, with a fair wind there are reasons for optimism.”