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Business Community Warns of "Final Hurdle" for Government as Lockdown Delay Threatens Sector's Survival

Strategic Insights

— 1 min read

The UK government's decision to delay the final stage of lockdown easing by a month has left the business community reeling, with many warning that the move risks "falling at the final hurdle" and could push the sector to the brink of collapse. The delay, which will see pubs and restaurants forced to continue operating with restricted capacity, has been met with alarm from trade associations and business leaders, who argue that the move could cost the sector billions in lost sales and lead to widespread job losses.

Key Takeaways:

  • The delay to the end of lockdown could cost the hospitality sector £3bn in lost sales, according to UKHospitality.
  • Many businesses will be hit with significant costs from the beginning of July, including the phased return of business rates and the tapering of the furlough scheme.
  • Kate Nicholls, head of industry group UKHospitality, warned that the delay would leave many businesses "at the end of the road".
  • Alex Proud, founder of Proud Group, said that the government's decision-making had left nightclub operators facing "mounting debts that they could not afford to pay".
  • The Night Time Industries Association warned that its member businesses would lose around £40,000 per week due to the extended lockdown.
  • The Treasury could lose out on over £700m in value-added tax receipts unless the government provides support for the live events industry.
  • The Association of Independent Festivals estimated that 26% of festivals with over 5,000 attendees had already been cancelled.

Statistics:

  • £3bn: estimated cost of the lockdown delay to the hospitality sector (UKHospitality).
  • £40,000: weekly loss for Night Time Industries Association member businesses.
  • £700m: potential loss in value-added tax receipts for the Treasury (industry estimates).
  • 19: new target date to lift all remaining coronavirus curbs (July).
  • 26%: percentage of festivals with over 5,000 attendees that have already been cancelled (Association of Independent Festivals).
  • £100m: weekly cost to pubs due to social distancing restrictions (British Beer & Pub Association).
  • PS250,000: daily increase in Greene King's business rates costs due to the end of the business rates holiday (Nick Mackenzie, CEO of Greene King).

Sources:

  • UKHospitality
  • Kate Nicholls, UKHospitality
  • Alex Proud, Proud Group
  • Night Time Industries Association
  • Association of Independent Festivals
  • Paul Reed, AIF chief executive
  • British Beer & Pub Association
  • Nick Mackenzie, CEO of Greene King

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