Government urged to step in and support hospitality trade

The move follows a wave of cancellations at some restaurants, pubs, and bars since Prime Minster Boris Johnson announced the introduction of coronavirus Plan B measures to tackle the rapidly-spreading Omicron variant.

And Rishi Sunak is now cutting short a trip to the United States for crisis talks with business chiefs as the spread of Omicron and health warnings wreak havoc on hard-hit pubs and restaurants.

The Chancellor has been criticised for going on the trip as the coronavirus variant’s spread led to a wave of cancelled bookings and falling takings across the hospitality sector. Meanwhile Wolverhampton South East MP and Shadow Chief Secretary to the Treasury Pat McFadden told ministers to provide urgent support for the hospitality industry.

Speaking in the Commons Mr McFadden said: “We are not in lockdown, but it would be totally disingenuous to pretend that businesses can trade normally when the Prime Minister has used a special national broadcast to warn the nation of a 'tidal wave' of Covid infections.

“The Government cannot pretend that nothing has changed. This is not the time to abandon businesses.”

Celebrity chefs Glynn Purnell and Alex Claridge, who own Michelin-starred restaurants in Birmingham, which has seen a hit to Christmas bookings, said further uncertainty would leave the industry in a mess. Mr Purnell said: “I just feel we’ve left it all too late again. We’re left in the same position we were in last March.”

Meanwhile Mr Claridge urged ministers to discuss its contingency planning with the industry quickly as many restaurants break up on December 23 or Christmas Eve.

Mr Claridge, who owns The Wilderness, in Birmingham, said the company made a decision in September not to take “big party” bookings at Christmas, “because we felt it was risky”. “That was the right decision, because we have not seen the wholesale collapse of bookings. For me, the tragedy is the symmetry with what happened in March 2020. Yet again, at best it is naivety from the Treasury and the Government – it’s pretty limp and insipid.”

He said his restaurant has gone from the “dream” scenario of having 75 per cent of bookings at least three months in advance, to now only being 10 days in advance.

“I understand the Government wants to choose its words carefully – to avoid the word ‘must’ – but the horse has bolted,” he added.

He said: “What needs to be discussed, even if they’re not terribly willing to do it, is a roadmap for business. If there is significant interruption, then I think it should be fair to assume that furlough should be reintroduced, and if there’s financial hardship, then will grants be on the table? If not then we want a VAT freeze at 12.5 per cent or we want it back down to five per cent.”

Hospitality businesses have been hit by cancelled bookings with some restaurants and cafes seeing customers crying off their planned events.

The announcement of Plan B, the introduction of Covid passes for nightclubs and large venues and the chief medical officer saying that people should be cautious has resulted in a drop for the industry.

Proprietors of the Ye Toll House in Walsall Street, Willenhall, Natalie and Trevor Dunn who have been running the restaurant for nine years said festive bookings have dropped by at least a third since restrictions were brought in. Mrs Dunn said: “We have had quite a few cancellations. We’re down around 300 customers for December so far. Obviously last year doesn’t count, but before Covid we were getting about 2,500 coming through our doors.”

In Wolverhampton Sham Sharma, who runs Zuri Coffee, in Lichfield Street, said: “Some don’t want to open because by opening they are losing money. With people working from home, there are less people in towns going out to have lunch.”

“The problem is there is no support this time round, which will have an impact on the workforce. The turnover has gone down around 50-60 per cent and that isn’t just me.”

But at The Apple Tree, in Central Drive, Coseley, it has been business as usual.

Manager Darius Walters said: “The announcement hasn’t affected us. We are Covid compliant and I guess it’s about playing it safe.”

NHS figures show a further six virus deaths have been confirmed in the region’s hospitals. It means the total number of hospital deaths in the Black Country, Staffordshire and Birmingham has risen to 8,687.

The UK recorded a further 146 deaths taking the total to 146,937 within 28 days of a positive test.

A further 88,376 cases have been reported. A total of 123,719,623 vaccines have now been administered.