Rishi Sunak urged to halt the hospitality sector ‘bloodbath’
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And more than half of rural pub landlords believe they are “likely” to be forced out of business by Covid restrictions unless the Treasury comes to their aid, according to an exclusive survey for the Sunday Express.
Leading the calls for action, Hannah Essex, co-executive director of the British Chamber of Commerce, said businesses will fail unless they are given immediate support by Chancellor Rishi Sunak.
She said: “What we need to hear pretty much now, on what should have been one of the busiest weekends of the year, is what they are going to do. Doing nothing is not an option.
“TheTreasury has been phenomenal in terms of supporting businesses – with the furlough scheme, grants and loans – but firms are now in a position where they’ve used up cash reserves, their costs are going up dramatically because of a massive surge in inflation and their customers have disappeared.
“We will see business failures if there isn’t any support now.”
Ms Essex gave an example of a hotel in Swindon that is “looking at a £400,000 loss”.
“The last 20 months have been absolutely brutal for this sector.They were just starting to see things pick up, and this is the point at which we could see them fall over the edge.”
The Countryside Alliance conducted the survey of 25 rural pubs across the UK for this newspaper as part of its UnLockInn campaign.
It found just one pub had seen an increase in trade this year while 23 have seen a drop. Already 42 per cent have been forced to lay off staff and 54 per cent are closing early.
In total 85 per cent reported Christmas party cancellations and one in five have seen losses of more than £20,000 while about 40 per cent have had losses of over £10,000.
The survey found 54 per cent said they were “likely” to go out of business next year unless restrictions are lifted or the Chancellor bails them out.
Mo Metcalf-Fisher, of the Countryside Alliance, said: “The situation pubs are facing is incredibly bleak, as many sadly face further cancellations and a loss in custom.
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“The public’s response to the ever-changing Covid messaging is having a direct knock-on effect for hospitality businesses who depend on heavy December footfall to see them through to the busier summer months.
“Pubs form the backbone of communities up and down the country and we cannot risk losing them. In the meantime, please support your local pub this Christmas.”
Parvez Unmar, general manager of Roseate Hotels and Resorts, said: “The Government’s new advice to limit contacts has been like a bloodbath to the hotel industry.
“We have already had mass cancellations and many hotels can no longer afford to hold on to staff. It has also knocked confidence in international travel which affects takings for 2022, as London will not be seen as a holiday destination.”
After the rebellion of 101 Conservative MPs against vaccine passports, Mr Sunak is also facing pressure from the backbenches to help pubs and restaurants.
Greg Smith, Conservative MP for Buckingham, said: “Pubs and restaurants across my constituency are suffering, some with over 50 per cent of bookings cancelled.
“My message is clear – when the Government brings in measures that hamper business it is their moral duty to make support available to save those businesses.”
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