Hospitality warns on ‘freedom’ delay
ANY delay to social distancing restrictions being lifted on
June 21 will cost billions of pounds and put thousands of businesses and jobs at risk, hospitality leaders have warned.
The owners of pubs, restaurants, nightclubs, live music and wedding venues have been angered by scientists calling for the postponement of “Freedom Day” for a few weeks to vaccinate more people.
Kate Nicholls, chief executive of industry body Ukhospitality, said: “The speculation from scientists about whether there should be a delay doesn’t help when people are looking to return to work.
“If the road map is delayed there will be very real harm to the industry. It would cost £3billion in lost revenue if restrictions were in place for another month.”
There are 106,000 licensed venues in the hospitality sector, so the £750million a week in lost takings amounts to £7,075 a week per business on average.
The industry is also set to be hit with a £92million bill for business rates for July, which is £868 on average per venue.
Government advisers yesterday said a two-week delay to Freedom Day is being considered due to fears the Delta/indian variant is fuelling a rise in infections across England.
Dr Rosalind Eggo, a member of the Government advisory panel, said with “very early evidence” showing that the current vaccines “don’t work quite as well against the Delta variant”, it is important to increase the rate of second jabs.
Ms Nicholls said this delay could plunge the more than 25,000 hospitality businesses unable to open with the current restrictions in place into permanent closure.
She added: “This is not just about lifting restrictions from businesses which are already trading, but trading at a loss.
“It is also about venues which have been closed since March of last year – nightclubs, live music venues and wedding venues have been particularly hard hit.
“Those businesses are clinging on by their fingertips, so you are likely to see accelerated failures and closures there. For the
others that are open with the restrictions in place and losing money, there is a very real impact on viability because the costs start to increase at the same time, with business rates coming back in.
“So you have a perfect storm of loss of revenue, inability to trade profitably and the additional costs.”
Ms Nicholls added that the uncertainty about when restrictions will be removed, combined with a fear that they will be reimposed “almost on a whim”, has made it hard to recruit new staff and to bring existing workers off furlough.
Ms Nicholls said: “The uncertainty is the single biggest issue employers are hearing when they are talking to people about starting jobs.”
Sacha Lord, night-time economy adviser for Greater Manchester, said he is “up for a fight” over the possible deferral of Freedom Day. He said: “Hospitality is the fifth biggest industry in the UK and June 21 is make-or-break for many.”
The British Beer and Pub Association has warned that thousands of pubs could be lost if the restrictions are kept in place. A survey of its 20,000
pubs and brewers found takings were 20 per cent lower in the first week of indoor trading from May 17 compared with the same week pre-pandemic.
At this rate, the average pub would lose £94,000 a year in turnover.
Emma Mcclarkin, chief executive of the trade association, said: “Pubs trade on incredibly small margins, so being 20 per cent down on normal times is huge.
“The countdown to freedom for our sector is on. Without restrictions removed, thousands of pubs remain unviable and could still be lost for ever despite being back open for now.”
Night-time economy leaders are also desperate to be allowed to benefit from pent-up demand for days and nights out, shown by a surge in ticket sales for events after June 21.
Event listings in England for clubbing, boat parties and sports events are up by 90 per cent on Fixr’s platform compared with the same period in 2019.
A similar pattern has emerged in Scotland, Northern Ireland and Wales.
Edmund Glover, Fixr’s chief executive, said: “Our figures point towards huge pent-up demand from consumers, heralding an exciting recovery for the country’s £60billion night-time economy.
“However, the industry needs more support and guidance from the Government so that venues and businesses can plan properly and make the most of the huge wave of enthusiasm.”
‘You would see accelerated failures and
closures’