Prior to the emergence of Omicron and Plan B restrictions, figures showed the hospitality industry was on track to reach 95% of pre-pandemic trade levels but consumer confidence has plummeted and businesses are facing ‘unprecedented and catastrophic levels’ of cancellations.
Pubs, bars, cafés and restaurants have already seen trade fall by a third and are expecting a further 22% drop in bookings for December.
Kate Nicholls, chief executive of UKHospitality, said: “Last year Christmas was cancelled and so much rested on this December period for businesses already staggering under a burden of debt incurred from the pandemic and facing rising costs across the board.
“If operators are unable to trade profitably over the next month, many will simply not survive - and those that do make it through face a return to 20% VAT in April.
“The Government must step in now and provide measures that support the businesses and jobs in the sector – by committing to keeping VAT at 12.5%, suspending business rates payments for the first quarter of 2022 and reinstating recovery grants.”