1,900 jobs to go at restaurant chains as sale sought

FUNDING FOR councils nationally to tackle coronavirus has been boosted by £500m as figures revealed six out of the top 10 places with the highest rates of the virus in the country were in Yorkshire.

Communities Secretary Robert Jenrick announced the funding, which is not ring-fenced, yesterday and said it would bring Covid-19 support to local authorities to £4.3bn.

The new investment comes after the financial black hole faced by councils due to the pandemic had become clear in recent weeks.

One report, from the County

Council Network, found all 39 of the county and unitary authorities included in their study could use up their available reserves in 2021/22 to cover a funding shortfall of £2.5bn.

And the need for Yorkshire’s local authorities to be properly funded was highlighted in new figures which showed that although in some areas rates were dropping, the majority of the areas nationally with the highest number of cases were in the

Communities Secretary Robert Jenrick on local authorities’ actions in the pandemic. region. Fears were raised on Wednesday that Bradford, Barnsley, Rotherham, and Kirklees were at risk of a local lockdown after figures showed high rates of infection.

All four were in the top 10 places with the highest infection rates in the week ending June 21.

For the week ending June 28, figures for which were released yesterday, those areas remained in the top 10. However, concerns were quelled by falling infection rates.

But Sheffield and Doncaster also joined the top 10 list and rates had risen from 20.6 to 24.4 per 100,000 population for the former, and from 17.4 to 21.3 per 100,000 population for the latter.

The burden of tackling coronavirus has already taken a hit on council finances, with Yorkshire local authorities telling The Yorkshire Post in May that they could declare themselves bankrupt in months due to pandemic.

Mr Jenrick said the funding announced yesterday will help reimburse local authorities for lost income and allow council and business rates tax deficits to be repaid over three years instead of one.

The Government said it understood the “unprecedented impact” the pandemic has had on councils’ income from car parks, museums and other cultural assets, and will compensate them.

Mr Jenrick said that to “boost cash flow” any loss of income above five per cent of the planned take from sales, fees and charges will be compensated at a rate of 75p in every pound.

He said: “Councils are playing a huge part in supporting their communities during this pandemic.”

James Jamieson, the Local Government Association’s chairman, said: “The further £500m extra funding to help councils meet extra COVID-19 costs pressures is helpful. But, in the context of the funding gap councils still face, substantial additional funding will be needed and we await further details on how this money will be distributed.”

THE OWNER of Bella Italia, Cafe Rouge and Las Iguanas has said it plans to cut 1,909 jobs after calling in administrators.

The company said it would close 91 of its 250 restaurants, but has saved others for now.

It still leaves around 4,050 workers at the company’s sites across the UK.

The board said that entering administration was in the best interest of stakeholders during the “extreme operating environment” it is having to trade through.

It is looking for a new owner, but said that the administration would allow it to end negotiations with landlords, a “critical step” before finding a buyer.

Chief executive James Spragg said: “After reviewing all our options with advisers, it became clear that we needed to take this action in order to protect the business and secure the best possible future for Casual Dining Group as we look to conclude a potential sale.

“We are acutely aware of our duty to all employees and recognise that this is an incredibly difficult time for them.

“Working alongside the administrators we will do everything we can to support them through this process with a view to preserving as much employment as we are able to.”

Bosses said that all the offers they have received from potential buyers involved reducing the number of restaurants it runs. The administrators therefore decided to close the sites permanently.

The list of closures include 35 Bella Italia, three Belgo, 32 Cafe Rouge, and 11 Las Iguanas.

It also includes several cafes and bars at airports, six of which are at Heathrow.

Administrator Clare Kennedy, from Alix Partners, said: “We appreciate that this is an extremely difficult time for all those associated with Casual Dining Group.”

Councils are playing a huge part in supporting their communities.