Hospitality Businesses Demand PM To Help Sector Or Face ‘Devastating’ Job Losses

More than 100 UK Hospitality businesses have written to PM Boris Johnson warning that he must personally help the sector.

The letter, led by the trade associations the British Beer & Pub Association (BBPA), UK Hospitality and the British institute if Inn keeping (BII), says that without an urgent support and additional help, most of the businesses will not ‘survive this bleakest of winters’ and hundreds and thousands of jobs will be lost.

It describes the latest restrictions going to be imposed on the sector, which include a 10pm curfew on operating hours and a legal obligation for licensed venues to operate table service only, have ‘made the flight to survive eve harder’ adding that prior to them being introduced half of all hospitality businesses don’t believe they would survive beyond the middle of next year.

Prime Minister Boris Johnson said that the new measures could be in place for next 6 months, although there is heavy pressure on the Government growing to review the restrictions amid criticism the new rules are leading the street filled by people en masse after closing time.

The letter also calls the Government to review the appropriateness on the latest restrictions for at least every three weeks and remove them if they have no impact in stopping the spread of the virus.

The letter also says that for the survival of the hospitality businesses ‘lead the economic and employment recovery’ they need more Government support.

It also states that the Chancellor’s winter support package ‘does not go nearly far enough’ for the imperiled sector, adding that ‘without an immediate review of the support on offer to pubs, restaurants and other hospitality businesses, many will be lost for years to come’.

Addressing the PM directly, the letter calls to remove the employer contributions immediately for the hospitality sector. To the job support scheme (JSS), provide a package of grant funding for those who face restrictions being brought forward.

To plan and rebuild beyond winter, the letter also says ‘the VTA cut and business rates holiday must be extended complete 2021 and beer duty cut’.

Set to launch on the November 1 following the cessation of Coronavirus Job Retention Scheme (JRS), the 6 month job JSS will see the Government continue to pay a part of employee’s wages.

As per the new scheme the employees must work a minimum of 33% of their contracted monthly hours.

For the remaining hours not worked, Government and the employer will pay a third of wages each, which means employees able to work only 33% of hours would still receive a minimum of 77% of their pay.

The measures have been already dismissed by majority of businesses in the hospitality sector for ‘not going far enough’.

In the end the letter asks the PM to intervene ‘as a matter of urgency’ and also offer a meeting with the sector leaders to help draw up with a sector specific support package to reflect sector specific restrictions and preventing ‘the devastating damage that is drawing ever closer’.

The letter is supported by over 100 co-signatories representing business across the sector including D&D London, Azzurri Group, Burger King, Caffe Nero, PizzaExpress, JD Wetherspoon and Tortilla.

Article Contributor Business Insider Stay up to date with retail and hospitality news with Mason Circle Follow us on social channels

Leave a Reply

Your email address will not be published. Required fields are marked *