IT’S CRIMINAL
Amid howls of anger from business chiefs over SIX-MONTH crackdown that threatens millions of jobs, one boss delivers his damning verdict...
ONE of Britain’s top business bosses yesterday led a backlash against ‘criminal’ Covid curbs that he claims could threaten millions of jobs.
Julian Metcalfe, the founder of sushi chain Itsu and sandwich shop Pret a Manger, tore into No10 for its decision to impose six-month restrictions.
Nearly a quarter of pubs and restaurants fear they will fail by the end of the year unless Chancellor Rishi Sunak unveils significant support for them, a poll found.
A survey by the British Beer and Pub Association, UK Hospitality and the British Institute of Innkeeping exposed concerns that as many as 540,000 jobs could go over the next few months.
This was before the latest restrictions for pubs, restaurants and the wider hospitality sector were announced.
Boris Johnson ordered all pubs and restaurants in England to close at 10pm from tonight and made table service mandatory. In addition, he ordered people to work from home if they can – a U-turn on his call for staff to return to the office in a bid to shore up ailing city high streets.
Responding to the restrictions, Mr Metcalfe said he did not know whether Itsu would survive the measures. ‘The repercussions of this six months is going to be devastating to so many people, to local councils, to industry, to people all over our country,’ he told Radio 4’s World At One.
‘We have just not begun to touch the seriousness of this. People who work in hotels, restaurants, takeaways and in coffee shops are devastated. A great many are closing down – we’re losing thousands upon thousands of jobs. How long can this continue, this vague “work from home”, “don’t go on public transport”? The ramifications of this are just enormous.
‘I hate to think how many people will be made redundant – it’s just heartbreaking. It’s hundreds of thousands of hospitality businesses, and the knock- on effects of people who look after them and service them and bring them food and clean them. It’s millions of jobs.’
Mr Metcalfe turned his fire on Mr Johnson, accusing him of announcing a policy of ‘exaggerated nonsense’.
‘To turn to an entire nation and say “stay at home for six months”, and to spout off some Churchillian nonsense about we’ll make it through – it’s terribly unhelpful to this country,’ he said.
‘This talk of six months is criminal. It should be “we will review the situation each week, each hour” – not “everyone stay home for six months and let’s see where we are”. Because the scientists are all disagreeing with each other.’
And while Mr Metcalfe welcomed Mr Sunak’s furlough scheme, he said: ‘We can’t as a country go on borrowing, borrowing, borrowing money, pretending it doesn’t matter.... Of course we’d love furlough to continue, but it can’t.’
Major firms including HSBC and Goldman Sachs have halted their return-to-the-office programmes, leading to increased fears for pubs and restaurants.
Citigroup has also eased its return to the office programme and has asked staff to exercise judgment. Barclays and Lloyds are also set to reduce their back to workplace programmes.
The Chancellor has drawn up plans to help hospitality firms, but businesses fear it won’t be enough.
The survey by the three trade bodies found that one in eight hospitality staff has already been made redundant, and more jobs in the sector are expected to be lost when the furlough scheme ends.
On average, businesses believe their workforce will be 25 per cent lower by February 2021 compared to February this year.
Emma McClarkin, chief executive of the British Beer and Pub Association, said: ‘This research shows pub businesses were already teetering on the edge.
‘Now the Prime Minister has announced even more restrictions for them, it is clear much more support will be needed from the Government to ensure they survive.
‘Only by taking these measures can the Government save our pubs, hospitality businesses and as many as 540,000 jobs.’
Kate Nicholls, chief executive of UK Hospitality, added: ‘The future of the sector is still very much in the balance. The additional restrictions announced this week place even further burdens on a sector that is operating with razor-thin margins and needs all the help it can get. It is vital that these restrictions are reviewed regularly.’
The chief executives of Deliveroo, KFC and Pizza Hut last night wrote to the Chancellor urging him to ensure that incomes remain stable, an extension of VAT reduction on food for six months, and an extension of business rates relief.
Catherine McGuinness, from the City of London Corporation, said safety had to come first, but expressed disappointment at the blanket call for office workers to return to working from home.
She told Radio 4’s Today programme: ‘It’s clear that this virus isn’t going to go away quickly so we need to find a way of living with it that doesn’t cripple our economy.’
Last night a Government spokesman said: ‘The aim is to reduce transmission in areas where people are enclosed and where they might come into contact with people they don’t know. This can include public transport and can include places that are not fully Covid secure. It is a way of reducing those chances transmission which is the name of the game.’
‘Exaggerated nonsense’