Rishi flies back for bailout

Chancellor jets home from US to seal deal for hard-hit firms

RISHI Sunak was forced to cut short a trip to California last night as he dashed back to Britain to hammer out a rescue package for hospitality firms.

The Chancellor caught an early flight home amid claims that he had ‘gone missing’ just as hospitality and retail businesses face catastrophe over the Omicron variant.

One pub boss yesterday called for Mr Sunak to ‘show up’ as a string of business leaders demanded cuts to VAT and business rates to help the sector cope with a collapse in demand.

The Treasury is understood to be resistant to the idea of reviving the furlough scheme. But officials are thought to be looking at how they could unlock around £250million of as-yet-unallocated funds given to local authorities to help firms.

Treasury sources said Mr Sunak was in ‘listening mode’ and would talk to business chiefs today. In an interview last night, Mr Sunak defended his four-day California trip, saying he had been there to talk to ‘people in the technology industry to make sure that the UK can be a place where innovation happens, where we can benefit from new jobs, new growth, new productivity, new services’.

He pledged to ‘work with industry leaders over the coming days’ on a possible bailout for businesses hit by a wave of cancellations in the Omicron panic.

Ministers have pledged to look at options such as giving firms longer to pay tax bills. But Mr Sunak is resisting calls for the furlough scheme to be brought back, fearing it would send the wrong signal. Yesterday he and his team held calls with hospitality chiefs and groups. But he faced criticism over his trip when many firms are struggling. Downing Street said it was a ‘long-planned... official trip, a work trip’. The boss of pub group Young’s called for Mr Sunak to agree to extend a lower rate of VAT and business rates holidays, due to end next March. Patrick Dardis said: ‘I have no idea where Rishi Sunak is right now but he needs to show up and give the industry his backing.’ UKHospitality boss Kate Nicholls said sales have plunged by more than a third over the last ten days. The Confederation of British Industry urged for the Government to provide support ‘in lockstep with future restrictions’.