Delay on lifting restrictions can have ‘devastating’ cost, experts say

Fears over jobs going, and huge financial losses for companies, with wedding plans also still being ruined

BORIS JOHNSON has been warned by one of the Government’s own advisers that a delay to lifting Covid-19 restrictions will have an “extremely damaging” effect on the economy and mental health.

Prof Robert Dingwall, who sits on a series of coronavirus advisory committees, urged the Prime Minister to press ahead with his original road map that should have seen “all legal limits on social contact” removed on June 21. Instead it is likely that – apart from some possible tinkering at the margins – there will be no further easing despite the success of the vaccination programme.

That is likely to mean pubs will be restricted to table service and theatres and other indoor venues restricted to 50 per cent capacity.

Nightclubs are expected to remain shut. The guidance that “everyone who can work from home must do so” will also remain in place, it is understood.

Prof Dingwall’s concern echoes those across the hospitality and entertainment sectors which have all warned of the dire consequences of sticking with social distancing restrictions.

Britain’s hospitality industry said yesterday 300,000 jobs were now being put at risk by any delay in an industry that estimates a loss of £87 billion in sales since the pandemic’s start. The trade body Ukhospitality said a further month’s delay would wipe an extra £3bn off the industry.

Even Sadiq Khan, London’s Mayor and a vocal advocate for lockdowns, has written to Mr Johnson warning the capital is “at risk of catastrophic collapse”. Mr Khan said: “As long as social distancing is in place, London’s hospitality, nightlife and cultural sectors, which have been hardest hit by the pandemic, will remain unable to reopen or fully reopen in an economically viable way.”

Rachael Robathan, the leader of Tory-run Westminster City Council, also warned Mr Johnson of the “devastating” consequences of any delay and called for financial support. She said yesterday: “Central London cannot afford any slippage in the fight to revive our economy.”

Kate Nicholls, Ukhospitality’s chief executive, said: “A full and final ending of restrictions is the only way to ensure that businesses in this sector can trade profitably.”

Prof Dingwall said: “It is extremely damaging to business confidence, the economy, morale – especially since there isn’t really a clear justification for it. What we are seeing is the beginning of what endemic Covid looks like and we should be unlocking and living with that.”

Pubs and restaurants

The British Beer & Pub Association said trade was 20 per cent lower as a result of restrictions that require customers to be served at tables. The trade body has called for “grant support” if June 21 restrictions are not removed. It estimates that one-in-20 pubs have stayed shut even after drinking indoors returned in May.

Restaurants and cafes – especially in central London and other major cities – have struggled and some have stayed closed because of the absence of office workers and visitors.

Weddings

Current rules prevent weddings taking place with any more than 30 guests.

Tens of thousands of couples – many of whom had delayed their marriages from last year – will be left distraught – and seriously out of pocket – if the cap on numbers is not lifted on June 21.

Mark Dawson, of the Wedding Venue Support Group, has insisted the 30 capacity figure was an arbitrary limit, based on a ‘hunch’ from scientists and without empirical data to back it up.

There is a suggestion the Prime Minister could increase the capacity, depending on venue size. But couples who cancel could be left owing thousands of pounds to caterers and hoping insurance companies will pay out.

Theatre

Under current rules, theatres can operate at 50 per cent capacity or else to a limit of 1,000 – whichever is the lower. Blockbuster productions, with high costs and big casts, remain commercially unviable.

Andrew Lloyd Webber threatened last week to ignore the law and open his new musical Cinderella at full capacity. It is due to begin previews on June 25. It remains to be seen if he carries out the threat. Yesterday Lord Lloyd-webber pleaded with ministers to increase the permitted attendance from 50 per cent to 75 per cent.

Live concerts

Music promoters have warned of impending doom if the restrictions on outdoor gatherings are not lifted as well as capacity limits of 50 per cent (or 1,000 maximum audiences) indoors. Vince Power, the music venue owner, said a series of gigs at his flagship Powerhaus (formerly Dingwalls) in Camden planned to mark the June 21 road map date would have to be cancelled if restrictions remain in place because they are not economically viable.

It will leave him about £150,000 out of pocket. Melvin Benn, promoter of Latitude and the Reading and Leeds festivals, said: “It would be beyond devastation if we had to cancel, not just for me but the whole industry.”

Sports arenas

The largest outdoor arenas where crowds can be spread out are allowed to host up to 10,000 fans or else a quarter capacity, depending on which is lower. Smaller venues are restricted to 4,000 spectators or 50 per cent capacity.

Pilot test events appeared to show little or no evidence that Covid-19 was being spread and fans have been allowed at Wembley for the European Championship. But if the Government decides to keep restrictions – not least because of large crowds using public transport and concern over meeting in pubs – then the knock-on effect for spectator sports would be devastating.

‘What we are seeing is the beginning of what endemic Covid looks like and we should be unlocking and living with that.’

Back to work

The Government guidance remains that “everyone who can work from home must do so” and this is now not expected to change as had been hoped on June 21.

The knock-on effect has seen commuter numbers drop sharply and city centre pubs, bars and cafes that cater for office workers taking a dramatic knock.