£3BN FREEDOM DAY DELAY
» Business fury as 300,000 jobs at risk » But Sunak refusing to keep full furlough
DESPERATE hospitality bosses are begging the Government for more help amid warnings the extension of Covid curbs will cost £3billion in lost sales and put 300,000 jobs at risk. Business chiefs called the possible monthlong delay in lifting restrictions in England a “hammer blow”. Many hospitality businesses that have reopened – including pubs, restaurants and hotels – are running at a loss because of the social distancing rules. And some venues, such as nightclubs – closed for the past 15 months – were banking on reopening on June 21 in order to survive.
Along with disappointment at restrictions being extended, there is mounting anger about the lack of any new help for companies left to count the cost.
Chancellor Rishi Sunak has so far ignored pleas to push back the date when employers must start contributing to the wages of furloughed workers.
From July 1, they must chip in 10%, on top of existing National Insurance and pension contributions.
A business rates holiday – another lifeline that has prevented countless retail and hospitality firms going bust – will be slashed from the same date.
And a ban on commercial evictions is due to end on June 30 – just as hefty rent demands built up during the pandemic are due.
Sacha Lord, night time economy adviser for Greater Manchester, said:
“Already there are landlords circling, they are screaming eviction.”
He added: “I have friends who have lost their houses, their relationships, their businesses.”
Kate Nicholls, chief of trade body UKHospitality, said: “The decision to delay is hugely disappointing but the Government has judged the evidence and acted as it sees fit.”
She added it is “crucial that further support is announced to push us over the line”. As well as predicting the four-week delay will cost the sector around £3bn and put 300,000 jobs at risk, UKHospitality said it will have a knock-on effect on bookings in the summer and into autumn.
Ms Nicholls said: “If the supports provided by the Chancellor are not sustained and adjusted, businesses will fail, and getting this far will count for nought.” Pubs alone are set to lose out on £400million in the next month, including a boost from Euro 2020.
The figure includes the impact of limiting customer numbers due to social distancing. Emma McClarkin, of the British Beer & Pub Association, said: “Every week the restrictions stay, the likelihood of pubs being lost for ever increases.
“A full package of Government support is now critical for our sector.”
Claire Walker, of the British Chambers of Commerce, said: “This delay to the removal of restrictions will come as a hammer blow to those firms who must remain closed, and to those who continue to see their ability to trade severely restricted.”
Mike Cherry, of the Federation of Small Businesses, added: “Many small firms who have been hanging on to the edge will be wondering if they can survive further periods of restrictions without additional support.” Shadow Business Secretary Ed Miliband said: “It would be wrong for businesses to suffer because of the Government’s poor handling of our borders and failure to contain the new variant. Economic measures must remain in step with public health restrictions.” Around 90% of nightclub owners warn the delay will threaten the survival of their business. It will also lead to around 5,000 gigs being cancelled. Blackpool Tower Circus, limited to 35% capacity, said the restrictions are costing “a huge amount of revenue”.