Staggered reopening risks further 99k job losses

The delayed reopening of hospitality will cost the sector £9bn, MPs have warned the Chancellor ahead of the Budget tomorrow.

In a letter sent to Rishi Sunak, 80 MPs warned that pubs, restaurants and hotels have been “ravaged” by the coronavirus crisis and urged the Chancellor to invest in the sector to support the recovery.

New figures from UKHospitality reveal the delayed reopening of businesses would cost £9bn in lost sales and other costs compared with reopening from April 1 and lifting all restrictions by June 21.

Under the PM’s roadmap out of lockdown, pubs and restaurants in England could be allowed to serve customers outside from as early as April 12 but will have to wait until May 17 to reopen indoors.

UKHospitality warned the staggered reopening plan puts at risk a further 99,000 jobs unless the Government’s furlough scheme is extended beyond April. The sector has lost an estimated 660,000 jobs since the crisis hit.

The Treasury has already confirmed the Budget will include a £5bn scheme to provide grants of up to £18,000 for high street and hospitality firms. However, the all-party parliamentary group for hospitality and tourism called on Sunak to also extend the temporary VAT cut for a further year and to apply the relief to alcoholic drinks sold on-premise, as well as extending it to the broader leisure sector and weddings.

They urged Mr Sunak to replace the scrapped job retention bonus, extend business rates relief and introduce improved loan repayment terms and HMRC tax deferrals.

“These sectors have proved historically, and even in the last twelve months, that they can drive economic growth,” the letter said.

“Following the last financial crisis, hospitality drove the ‘jobs miracle’ boosting its workforce by half a million in a decade.”