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Hospitality industry reacts to second national lockdown

2nd Nov 2020 - 08:37
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UK Prime Minister Boris Johnson
Abstract
UK Prime Minister Boris Johnson announced the UK will enter a second national lockdown starting Thursday 5 November until Wednesday 2 December due to the rising number of Covid-19 cases.

The Government believes the ‘single most important action we can all take is to stay at home, to protect the NHS and save lives’. The Government is taking the following action:

  • Requiring people to stay at home, except for specific purposes.
  • Preventing gathering with people you do not live with, except for specific purposes.
  • Closing certain businesses and venues to help reduce the spread of the virus.

Hospitality venues like restaurants, bars and pubs must close but they can still provide a takeaway service.

Reacting to this news Kate Nicholls chief executive of trade body UKHospitality, commented: “Public health objectives are, rightly, the motive for the new measures, and for that reason we entirely support whatever proportionate action is necessary.

“The costs to hospitality businesses of a second lockdown will be even heavier than the first, coming after periods of forced closure, the accumulation of mass debt and then significantly lower trading due to the restrictions of recent weeks.

“The sector was hit hardest and first, and this recent shutdown will hurt for months and years to come. The extension of furlough for a further month does help to protect our workforce during this difficult time.

“If hospitality, the sector that is our country’s third largest employer, is to survive and help drive economic recovery, it will need equivalent – or more – support than that of the first lockdown.

“Hospitality businesses have already been pushed to the limits, with many closures already. For those that have survived, viability is on a knife-edge, as is the future of the tens of thousands of businesses and hundreds of thousands of jobs that depend on hospitality, including through its supply chain, right across the country.

“It is critical that businesses are given a lifeline to survive the winter, before being given the support to enter a revival phase in 2021, as the nation’s prospects improve. A clear roadmap out of lockdown and through the tiers will also be vital for businesses to plan their survival, and the safeguarding of hundreds of thousands of jobs.”  

Responding to the Prime Minister’s announcement that the country will enter a second national lockdown, Ian Wright CBE, FDF chief executive, said: “Confirmation that the furlough scheme will be extended is extremely welcome news for food and drink businesses who continue to feed the nation. However, we need further clarity that the food supply chain will be supported sufficiently.

“Without further reassurance thousands of jobs will be under threat as businesses consider closing their doors for good. The economic impacts of this decision threaten calamity unless we see further details of a rescue package in the next 72 hours.”

Written by
Edward Waddell