Bosses warn Sunak that roadmap delay will ruin pub and restaurant industry

Pubs -  Shutterstock
Pubs - Shutterstock
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Pub and tourism bosses representing more than 150,000 workers have issued a desperate plea for support amid a growing expectation that the prime minister will delay the removal of Covid-19 restrictions later this month.

In a letter to Chancellor Rishi Sunak, chief executives of pub chains including Greene King, Mitchells & Butlers and Stonegate Pub Company warn that Britain risks "a wave of business failures" if the roadmap is pushed back past June 21.

Around 300,000 jobs are at risk if restrictions remain in place, the bosses say. They fear that a one-month delay to the removal of social distancing guidelines would cost the industry around £3bn in sales.

Other signatories of the letter - compiled by trade group UKHospitality - include Merlin Entertainments, which is behind tourism hotspots Alton Towers and the London Eye; UK holiday park owner Park Dean Resorts; and bar operator Revolution Bars.

The bosses write: "There is increasing concern and despair within the hospitality and tourism sectors about reports of a delay to the lifting of all restrictions on 21 June, as the roadmap had stated.

"The consequences of restrictions remaining would be profound.

"It would further jeopardise the future of thousands of businesses, including many that still have not reopened their doors since last March. Confidence in reopening would be shattered, despite the incredible sums invested in our venues to restrict Covid transmissions."

The chief executives urge the Government to "act decisively" and remove all restrictions, as well as extending a host of support packages which have kept the hospitality industry alive after more than a year of lockdowns.

These include the business rates holiday and the rent and debt moratoriums which stop landlords from evicting tenants who cannot pay their bills during Covid-19 restrictions.

The signatories write: "We appreciate you have a cautious path to tread but the incredible success of the vaccine has provided us all with the opportunity to return to a sense of normality, allowing hospitality businesses to trade their way out of difficulties and contribute to our national recovery."

The letter comes amid growing fears that the spread of the Indian variant across the UK will prompt Boris Johnson to delay the final stage of the Covid-19 roadmap, keeping restrictions in place past June 21. He is due to make an announcement on Monday.

Figures released by Public Health England on Friday showed the Delta variant was 60pc more transmissible than the Kent strain of Covid-19, prompting health officials to push for a pause on easing restrictions.

Under the current rules, restaurants and pubs can only operate at a reduced capacity and are unable to serve customers at the bar.

Tourism companies have also been hampered by recent waning confidence. UKHospitality boss Kate Nicholls last week said that government warnings over travel were prompting Britons to cancel their summer staycations.

Ms Nicholls told MPs that few restaurants and pubs were able to operate profitably during the Covid-19 restrictions.

Hospitality companies will face a £95m monthly cost if support schemes come to an end from July. Employers will also have to start paying contributions to the furlough scheme.

The bosses write: "The sector will either have to pick up a huge bill or make people redundant – an invidious position."

A Treasury spokesman said: “We’ve provided support to hospitality and tourism businesses since the start of the outbreak, and this support continues, with furlough in place through to the end of September and a VAT cut in place until March 2022.

“This support is complemented by the unprecedented £350bn the Government has spent supporting businesses and protecting jobs”