Angry business leaders warn of ‘cataclysmic Christmas’ as government fails to deliver support

Hopes of financial help dashed after Boris Johnson declines to bring in new Covid restrictions

Hospitality bosses have made a plea for urgent help (PA Wire)

Angry business leaders have warned they face a "cataclysmic Christmas" after the UK government rejected calls for urgent financial help and chose not to bring in further Covid restrictions to slow the rapid spread of the Omicron variant.

Pub, retail and leisure industry trade groups called for immediate clarity after a fortnight of mixed messages that have helped cause a collapse in consumer confidence, mass cancellations of restaurant and event bookings and a sharp decline in shopping visits to high streets.

However, Boris Johnson offered more ambiguity on Monday, promising to keep reviewing the data “hour by hour” after a tense two-hour Cabinet meeting.

Following clashes with senior Tories opposed to more restrictions, the prime minister didn’t announce any new support but warned people to prepare for further Covid controls in future, leaving businesses in limbo.

The prime minister dashed hopes that he would yield to pressure after days of meetings between the chancellor and business leaders.

Hospitality bosses renewed their call for urgent help and accused the government of implementing a "lockdown in everything but name" as figures revealed an increasingly bleak picture for the industry.

A survey by the Night-time Industries Association revealed that half of nightclub businesses estimate they will have to cut 50 per cent of their staff unless they get financial assistance.

Late-night venues reported visitor numbers were down 40 per cent after the introduction of Covid passes last week while pub chain Fuller's reported bookings in London are down 80 per cent.

Figures from Springboard revealed footfall at high streets and shopping centres was down 19 per cent last week compared to the same week in 2019, putting a big dent in retailers' Christmas takings.

Research by trade body UK Hospitality found a third of pubs have no cash left and takings are down 46 per cent in December. The group is calling for cash grants to be announced this week to avoid a wave of businesses failing in the new year.

The governments' scientific advisors have warned that delaying restrictions could lead to tens of thousands more hospital admissions and mean that restrictions may ultimately need to be in place for longer. Hoewever, senior figures in Mr Johnson’s government are still divided over whether to introduce new curbs.

"Unfortunately I must say to people that we will have to reserve the possibility of taking further action to protect the public, to protect public health, to protect our NHS," the prime minister said.

"It is important we act cautiously but it is also important we look after the hospitality industry, the theatres and other parts of our incredible entertainment industry which have suffered and are suffering."

Experts warned that a "circuit-breaker" lockdown after Christmas currently being considered by ministers could cause job losses and business failures unless it comes with targeted financial support.

"Even if you think balance of risks is too finely balanced to take a decision on restrictions, it’s totally unbalanced in favour of needing to announce targeted furlough immediately. Pubs, theatres and the rest are being hammered," said Torsten Bell, chief executive of the Resolution Foundation.

Nik Antona, chair of the Campaign fro Real Ale, said a curfew for pubs and bars in England was "horrifying".

“What pubs, social clubs and their supply chains need is a new, comprehensive support package from the government.

"This must include grants, employment support, rent support and business rate relief. Existing financial schemes designed to get the hospitality sector through reopening are simply not good enough when the actions of the Government are driving consumers away from pubs in their masses.”

The chancellor has resisted calls for additional help, pointing to existing measures including a reduced rate of VAT for hospitality businesses and 25 per cent business rates relief. Many firms had previously been receiving 10 per cent off their rates.

The Welsh government has committed to cutting rates by 50 per cent for shops, pubs, restaurants and leisure businesses from next April.

While the tax relief has been welcomed, it does not replace billions of pounds in lost revenues.

A survey by the Night Time Industries Association of over 500 nightclubs, bars, pubs and hospitality venues revealed growing fears for the future of the sector.

One third of those polled predict they will be forced to close within a month.

“It really is a chilling prospect to see so many venues in our sector left to bleed, with a lockdown in everything but name and absolutely no recognition of this from the government," said Michael Kill, Chief Executive of the Night Time Industries Association.

"The government have had twenty months to learn how our sector operates; it beggars belief we stand here again, as if back in March 2020, imploring the government to listen to us, to understand how businesses work and to realise that inaction is a death sentence for our industry. It really is a Cataclysmic Christmas.”

Hospitality businesses make around a quarter of their profits in the run-up to Christmas but takings have been decimated by growing fears about Covid.

UKHospitality CEO, Kate Nicholls, today said that vital period of trading had been "hugely damaged" by a steady stream of pessimistic news.

“We know from previous lockdowns that it causes venues to haemorrhage cash," Ms Nicholls said.

“Trading levels are so poor that the need for proportionate government support is already acute, and urgently necessary if businesses, jobs and livelihoods are to be secured.”

Shadow health secretary, Wes Streeting, said: "Boris Johnson is too weak to stand up to his own backbenchers, many of whom have no plan beyond 'let the virus rip'.

"Today, while businesses across the country wonder if they can continue to trade, and families make frantic calls about whether they will see each other this Christmas, true to form the prime minister has put his party before the public."

Liberal Democrat leader Sir Ed Davey said: "Boris Johnson is weak, indecisive and incapable of providing the leadership our country needs.

"His credibility has been shot to pieces, he's no longer trusted by the public or supported by his party. At a time when people urgently need clarity and reassurance, we have more chaos and confusion.

"Families want to know urgently what Covid measures to expect, so they can plan for the days ahead."