Retail and hospitality leaders have laid bare the difficulties they face over the next month, as they rush to put measures in place to cope with the ‘devastating blow’ of a second lockdown.
The British Retail Consortium described the latest restrictions as the ‘nightmare before Christmas’, while the Night Time Industries Association warned of ‘financial armageddon’ as businesses face at least another month of closures.
Industry bosses said it will now be ‘much harder’ for firms to survive, despite the furlough scheme being extended for another four weeks, as they believe it is just a ‘short-term fix’ until the Government sorts out the track and trace system.
No 10 was also criticised for not announcing the furlough extension until the day the scheme was due to end, warning that many businesses have already been forced to make redundancies believing they could no longer rely on the financial support.
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Boris Johnson last night announced England will go into its second lockdown of the year, forcing all non-essential shops, restaurants and pubs to close their doors – except for takeaway services – until December 2.
Chief executive of the Night Time Industries Association, Michael Kill, called yesterday the ‘most horrific of Halloweens’ for the already hard-hit hospitality industry which has been the subject of many recent restrictions.
Mr Kill said: ‘It’s frightening to think that given the gravity of the situation, we are still being given limited communication, consultation or time to respond, or plan around these decisions.
‘The entire night time economy consisting of thousands of businesses and hundreds of thousands of workers are suffering.
‘Their plight is being made even worse by the huge void in financial support for the sector.’
Hospitality leaders previously hit out at the Government for being ‘unfairly punished’ with the 10pm curfew and a households mixing ban, and have again called for officials to release evidence proving their sector is largely responsible for a spike in transmission rates.
Chief executive of the Society of Independent Brewers, James Calder, said: ‘Time and time again the hospitality sector has asked the Government for evidence on how increasing restrictions on pubs, bars and taprooms will help control the virus. We have not been provided with it.’
He added: ‘When pubs are told to close the fresh beer sitting in the cellar has to be disposed of. During the first lockdown some five million pints were poured away and small brewers were left to foot the bill.
‘Will this time around Government support small brewers? If not we will see hundreds go to the wall before Christmas.’
Chief Executive of the British Retail Consortium, Helen Dickinson, said the previous lockdown saw the industry lose £1.6 billion in sales and warned that the losses this time ‘are certain to be much bigger’ ahead of the ‘all-important’ Christmas shopping period.
Ms Dickinson said: ‘Retail faces a nightmare before Christmas as the Government proposes to close thousands of retail premises under this new national lockdown, denying customers access to many of their favourites shops and brands.
‘It will cause untold damage to the high street in the run up to Christmas, cost countless jobs, and permanently set back the recovery of the wider economy, with only a minimal effect on the transmission of the virus.’
She pointed to a recent Sage paper that reported closing non-essential retail would have ‘minimal impact’ on transmission rates.
Cabinet minister Michael Gove admitted the lockdown could be extended into December if the restrictions do not successfully bring down the R rate.
Former Chief Scientific Adviser Sir Mark Walport said it is ‘obviously a possibility’ this lockdown could last longer than the first, as the infection rate will unlikely drop as quickly due to schools remaining open.
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