UK News Pub bosses say 200,000 London workers will lose jobs this weekend

13:15  16 october  2020
13:15  16 october  2020 Source:   dailymail.co.uk

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Tougher Tier 2 Covid restrictions will put up to 250, 000 jobs at risk in London 's hospitality sector, according to the industry's trade body. UK Hospitality chief executive Kate Nicholls said that without additional government support thousands of jobs in the capital will go.

a group of people standing in front of a crowd: MailOnline logo © Provided by Daily Mail MailOnline logo

Around 200,000 people in central London could lose their jobs in hospitality this weekend as Tier 2 sees a 'maximum squeeze on revenue and no support', an industry spokesman warns.

Last night revellers descended onto London's streets to enjoy the final night out before the capital is plunged into the tighter lockdown restrictions, announced yesterday by Health Secretary Matt Hancock.

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White collar jobs carnage at Christmas: FIFTH of UK bosses expect to axe up to 10% of workers by end of year - with office staff in But while pub , restaurant and retail employees have already taken the brunt of the damage in terms of jobs losses, with businesses having endured months of lost trade

From midnight today individuals from different households in London, Essex, York and parts of Derbyshire, will be banned from mixing indoors, even in hospitality venues - with outdoor socially distanced mingling permitted for groups of up to six.

Party-goers in central London opted to spend last night traipsing from pub to bar in Soho, ahead of tonight's Tier two ban, which will mean groups of friends (up to six) from different households will be required to meet in beer gardens or at restaurants with outdoor seating if they wish to support the already struggling industry.

Kate Nicholls, Chief Executive of UKHospitality, has warned that the lack of sector-specific funding offered to the country's hospitality industry could be 'catastrophic'.

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But pub bosses hit back, saying a return to closures would be devastating for the industry and households that rely on it for work . It came as: Boris Johnson was accused of leaving the wedding industry in the lurch after delaying the resumption of larger receptions

Mr Mullins, whose firm has 200 staff, said he was forced to employ foreign-born people And he said his foreign-born employees tended to earn more than native workers because they were But he said that many of the British people he interviewed for jobs had the wrong attitude and demanded too much.

Speaking to BBC breakfast Ms Nicholls said the new restrictions are likely to see businesses in central London - which are already suffering due to restrictions and fewer tourists and office workers - letting around 200,000 people go this weekend alone.

Ms Nicholls said:'The pain of Tier 2 is that you have no government support and that's what we need the government to urgently address otherwise you are going to have about 200,000 people in central London losing their jobs this weekend.

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London Mayor Sadiq Khan warned it is 'inevitable' London will be plunged into a Tier Two lockdown this week Health minister Helen Whately said care home residents' families will be treated as key workers with The measures will see pubs and restaurants shut ahead of this weekend , with the

London will face tighter Tier Two controls from midnight tomorrow after a deal was done with mayor However, in pub gardens, private gardens and other outdoor spaces it is still permitted as long as Tory MP Bob Blackman said the whole of London should not be put into restrictions when cases

'If you go into level three you are getting support if you're closed, so at least you would have something to pay the teams. (...) For businesses in this part of the capital it would probably be better to be paid to be closed.'

Almost a third of restaurants and pubs in England will be affected by the tougher tier curbs introduced tonight - more than 8,500 venues and 5,000 pubs.

Pubs which serve very little food are expected to have suffered the most through the pandemic so far, due to not having benefitted from the 'Eat Out to Help Out' scheme which saw a cut on food VAT.

Now pubs under tier 3 will also now be forced to stop serving alcohol if they're not serving a 'substantial meal' along with it.

Ms Nicholls said: 'Being moved into tier 2 is a curse for businesses. They will be trapped in a no man's land of being open, but with severe restrictions that will significantly hit custom, all while unable to access the job support available in tier 3. It is the worst of both worlds for businesses.

'Venues in London have already taken a hit due to the dip in inbound tourism and with people increasingly working from home. A move into tier 2 will now be catastrophic for some of them and it is only going to be made worse by the end of the furlough scheme in under two weeks.

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'The Government must remove employer contributions from the Job Support Scheme for hospitality or apply tier 3 job support to tier 2 businesses. If it does not, we are looking at catastrophic businesses closures and widespread job losses in the capital as early as 1 November.'

Ms Nicholls has pushed for the 'job support scheme' , which requires employers to cough up 55 per cent of staff wages, to waive employer contributions and called for a tier-3 style funding for all hospitality in which venues hit by closures can get £3,000 cast grants.

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Industry bosses previously estimated 300,000 hospitality jobs would be lost in the absence of an industry bailout by government - but inline with Ms Nicholls prediction of 200,000 jobs to be lost in central London this weekend alone the total could be much higher.

Robert Hayton of Altus, a property advising group, told The Guardian: 'Further restrictive measures that adversely impact trade, already at far lower levels than before the pandemic, without any discerning targeted support, could be the death knell.'

Jasmine Whitbread, the chief executive of London First, said she believes that more transparency is needed over how these short-term measures are expected to reduce transmission of covid-19 and avoid 'worse to come'.

Ms Whitbread told the publication: 'The government must not repeat the mistakes of the summer and must use this time to fix the track and trace system and put in further support for those businesses unable to trade.'

Richard Corrigan, one of the West End's best known restaurateurs, said many establishments were already 'fighting' to stay afloat and would not survive a second hospitality shutdown.

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Guillaume Marly, Managing Director of London's Hotel Café Royal, said a second lockdown would be 'hugely detrimental to our industry' and the 'nail in the coffin for a vast amount of businesses'.

'There has been an unacceptable lack of consideration and understanding for our industry as a whole and now is the time to show support,' he told the Daily Telegraph.

Jonathan Raggett, Managing Director of Red Carnation Hotels, which operates several properties in London, also criticised Government moves to plunge the capital into lockdown.

He told the newspaper: 'We are of course disappointed to hear that there may be limitations put in place that would affect the hospitality industry once again. The safety of our staff and guests is paramount.'

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