Despite soaring public debt, the UK government has pledged to support hospitality firms in areas facing Tier 2 Covid-19 restrictions.
Recently, hospitality workers had taken to the streets in London calling for support amid the new restrictions to curb the spread of the coronavirus. Many have expressed criticism of the new three-tier system and its impact on the economy.
Chief executive Kate Nicholls described Tier 2 coronavirus restrictions as the “worst of both worlds” for business.
“They will be trapped in a no man’s land of being open, but with severe restrictions that will significantly hit custom, all while unable to access the job support available in Tier 3,” she said.
The chancellor, Rishi Sunak is expected to make a statement in the Commons which will reveal extra funding for restaurants, pubs, bars, cafes and other venues impacted by government curbs. Sunak`s announcement of the new furlough subsidies within a month will be a “generous package”, officials say.
A fall in inbound tourism due to the pandemic has affected London venues, with many staff working from home and the new restrictions will worsen the impact. Kate Nicholls warned that as the government winds off the furlough scheme wages will decrease significantly as firms will have to cover a larger share of the replacement scheme.
On Wednesday, the UKHospitality trade body also warned that the new three-tier Covid-19 restrictions will prompt “catastrophic business closures and widespread job losses”.
Hospitality leaders will meet with Sunak in a London restaurant later to discuss the new support.