Cheers! Last drinks before the shutdown
... but Sunak rejects bailout for hospitality
RISHI Sunak will reject a plea by London’s mayor for a bailout for the capital’s hospitality industry after it was plunged into Tier Three.
Sadiq Khan demanded extra support for pubs and restaurants amid fears 150,000 jobs could be lost in London after it was placed under the most severe restrictions.
He called on the Chancellor, pictured, to put a compensation scheme in place, guaranteeing to make up all lost income for the festive season based on last year’s returns.
But the Treasury said Mr Sunak had already announced support for hospitality firms and the funds on offer would not be increased.
A source said: ‘We’ve put in place £280billion worth of support in this pandemic to protect millions of jobs and businesses. The furlough scheme has been extended through to March and businesses can apply for grants and Governmentguaranteed loans as well as enjoying VAT holidays and business rates relief.’
Health Secretary Matt Hancock announced on Monday that he was forced to put London into Tier Three along with parts of Essex and Hertfordshire in a bid to slow ‘sharp, exponential rises’ in coronavirus across all ages.
UKHospitality warned that 150,000 jobs could be at risk if pubs and restaurants were forced to close in the capital.
Theatre bosses said the new rules – which will also force them to close venues – will prove ‘devastating’.
Mr Khan said: ‘I don’t want London to be in Tier Three for a day longer than necessary. I am hugely concerned about the negative impact that the additional restrictions will have on jobs and many businesses that are already struggling to stay afloat.
‘We now urgently need much more government support for the sectors of our economy that are being hit the hardest, including hospitality, culture, and leisure. ‘It is crucial that ministers urgently put in place a compensation scheme for all lost income, based on last year’s returns, for any businesses affected by the further restrictions during this crucial festive period.’