The extension to the Coronavirus restrictions is estimated to cost the hospitality sector £3bn in lost sales and put 300,000 jobs at risk.
Business leaders have called on the Treasury to extend financial support measures, calling plans to stall the final lifting of lockdown restrictions by one month a ‘hammer blow’ to Covid-hit firms.
The idea of the UK returning back to normality on June the 21st was shot down on Monday as the Prime Minister warned more time is needed to tackle rising infection rates, driven by the so called Delta Covid variant, first identified in India.
Firms such as pubs and restaurants will still have to operate at limited capacity and others such as nightclubs will have to stay shut until at least July 19.
Employers who currently receive subsidies to pay for 80% of furloughed workers’ wages will instead get 70% and have to make up the extra 10% themselves.
Kate Nicholls, chief executive of UK Hospitality, said that the sector had already lost more than £87bn in sales and called for more support from the Government.
‘Simply put, if the supports provided by the chancellor are not sustained and adjusted, businesses will fail and getting this far will count for nought,’ she said.
The British Beer and Pub Association (BBPA) said it would cost pubs £400m and create ‘real fears of a lost summer’ for the sector.
Claire Walker, co-executive director of the British Chambers of Commerce (BCC), 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.
‘It would be extraordinary if we saw government retracting support to businesses now.’
Greater Manchester Mayor Andy Burnham described the decision as ‘wrong’, tweeting: ‘If you are extending the restrictions, you should extend business support, particularly for those most affected. Simple as that.’
Editor-in-Chief | Carl D. Pearson has been involved in British politics and media from an early age, with the key knowledge of what it takes to run a news organisation for the 21st century. Mr Pearson, as Editor-in-chief, is responsible for supervising the daily tasks of publishing media and content to UNN’s website and various platforms.
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