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The new closure restrictions to be imposed across much of England from Saturday could be the “death sentence” for many pubs and restaurants, the government has been told, as business groups expressed concern over a wave of losses. of jobs in the coming weeks.
London, Essex, York, and parts of Derbyshire are among the regions that will be subject to Level 2 restrictions, meaning people from multiple households won’t be able to mingle in places like pubs, restaurants, and bars.
Nearly a third of restaurants (8,468) and more than one in seven pubs (more than 5,000) in England would be affected by the measures announced Thursday, according to property consultant Altus Group.
Robert Hayton, an Altus executive, said: “More restrictive measures negatively impacting trade, already at much lower levels than before the pandemic, without any specific discerned support, could be the death sentence.”
The hospitality sector has already experienced a drop in sales after the introduction of restrictions including a 10 pm curfew and the “rule of six”, which have led to a reduction in footfalls in centers. urban and urban. Pubs and bars that serve little or no food have suffered the most because they have not benefited from the “eating out to help” scheme or a temporary reduction in VAT on food.
The head of trade body UKHospitality said the new measures were “the worst of both worlds” because they would harm trade, but they did not come with the same financial support available to businesses in designated level 3 areas, where pubs and bars must close. unless you are serving large meals.
The organization fears that London locations will be particularly hit as they are already recovering from the loss of tourist trade and office workers.
“A move to Level 2 will now be catastrophic for some of them and will only get worse when the licensing scheme ends in less than two weeks,” said Kate Nicholls, UKHospitality Director.
Hospitality industry bosses have previously said 300,000 jobs could be lost without an industry-specific bailout.
Nicholls called on the government to provide a financial safety net by allowing hotel companies to waive contributions to Chancellor Rishi Sunak’s employment support plan, which requires companies to pay 55% of an employee’s monthly salary, or by giving them the same support available to businesses. in level 3 regions, which includes covering two-thirds of workers’ wages in companies forced to close by restrictions.
“Yes [the government] it does not, we are facing catastrophic company closings and widespread job losses in the capital as of November 1, “he said.
The executive director of the British Beer and Pubs Association (BBPA), Emma McClarkin, called on the government to “do the right thing” by announcing a specific financial support package, adding that permanent closures would be inevitable without it.
With London poised for local restrictions similar to those already imposed across vast swaths of England, groups focused on the capital’s prosperity urged the government to ensure that measures could be lifted as soon as possible.
“If tough action now means we can save lives and avoid a more severe lockdown later on, then companies in the capital will expect these short-term measures to prevent the worst from coming,” said Jasmine Whitbread, London First CEO.
“Transparency about how the measures are expected to reduce transmission and when they will be lifted as rates fall will be crucial to building trust. The government should not repeat the mistakes of the summer and should use this time to fix the track and trace system and provide more support to businesses that are unable to trade, including extending commercial rates and VAT exemptions. “
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The Confederation of British Industry called the imposition of Level 2 measures in London a “serious setback” and urged the government and the mayor of the city, Sadiq Khan, to use all the tools at their disposal to protect jobs .
While businesses affected by Tier 2 restrictions are not eligible for additional support, those affected by higher Tier 3 restrictions can get cash grants of £ 3,000 per week and a higher contribution from the state as part of the plan. Sunak’s job support.
The London Chamber of Commerce said many companies in the capital would prefer to be subject to stricter restrictions if it meant they could access such support.
