Osborne predicts quick economic recovery
Bars and restaurants “would lose less money staying closed” if social distancing measures were imposed, it has been claimed.
The World Health Organisation (WHO) issued guidance that one metre is enough for social distancing - but both UK and Scottish Governments have insisted on a two-metre rule.
Hospitality industry figureheads said that could reduce capacity by 75 per cent, making it unviable for bars and restaurants to reopen and causing smaller businesses to fold.
Allan Henderson, director of Mcginty’s Group, said: “Most restaurants would need to be at 60 per cent to 70 per cent of occupancy to be commercially viable.
“Down at 25 per cent to 30 per cent, it really is not worth doing. You would lose less money staying closed.”
The economic recovery following the Covid-19 outbreak could be quicker than that which followed the global financial crisis, George Osborne said.
The former chancellor of the exchequer called on the Government to set out its longerterm plan for the economy to instil confidence in the markets.
Asked if he thinks the economy will “bounce back”, he told BBC Radio 4’s Today programme: “I’m not sure bounce is the right word.
“I think it will recover. “In fact, I think the damage being done alone is actually less than the damage that was done during the banking crisis because that completely clogged up all the credit system of the economy.”
He added: “The drop is much sharper, this quarter of the year is an extraordinary fall in GDP.
“I think the recovery can be quicker and the overall damage can be less but if I was in the Government now I would be starting to set out what my longer-term plan is, not just on the deficit but getting all these people who are unemployed back into work.”
Mr Osborne, who now edits the Evening Standard newspaper, said the UK will now be “poorer” as a result of the pandemic and the Government will have to make “hard choices” as a result.
He added: “Over time we have to come to terms with the fact that Britain like every other country is poorer than we thought it was going to be and our economy is smaller than we thought it would be.
“And that I’m afraid will lead to hard choices about what we can afford”