UK will give 1 billion pounds to hospitality to compensate for “unofficial lockdown”

The United Kingdom Government has presented an additional assistance plan endowed with 1,000 million pounds (1,177 million euros) in support of the hospitality and leisure sector in the face of the impact of the new omicron variant of the coronavirus. Finance Minister Rishi Sunak announced this package of measures at the beginning of an ‘unofficial lockdown’ in the country after England’s leading epidemiological expert, Chris Whitty, recommended limiting social interactions to a minimum at a press conference .

Pubs, restaurants and other hospitality and entertainment businesses will be able to claim cash grants of up to £ 6,000 each. Extra money will also be given to cultural institutions and companies that have to pay sick leave.

The move aims to end growing unrest among companies, which are calling for more public aid to survive what the Confederation of British Industries has called a “stealth lockdown.” Until now, the Treasury had promised to extend measures that were already in force, such as reducing taxes or commercial rates, but companies had asked for more.

“The current situation is very difficult, especially for those in the hospitality industry,” Sunak said. When asked about the prospect of new restrictions, Sunak echoed Boris Johnson’s message that ministers can’t rule anything out. “We are dealing with an enormous amount of uncertainty right now.” However, Sunak hinted that the Treasury is prepared to step in with more help if stricter restrictions are introduced, saying it will “always respond proportionally and appropriately to the situation we face.”

The government has been debating for days the possibility of imposing tougher restrictions, such as limits on the number of people who can gather for Christmas social gatherings. However, the deep division in the ranks of the Conservative Party has led Johnson to postpone the final decision until the last moment. This past Monday, a long three-hour Council of Ministers ended without any decision on the matter, and the media suggest that there will be another “in the next 48 hours” where the issue will be debated again.

The parliamentary vote on the obligation to wear masks in closed spaces a week ago ended a rebellion that was joined by a third of the ‘Tory’ deputies, and any tougher measure will need the support of the Labor opposition to move forward. A very difficult prospect for a prime minister in his most delicate political moment, sinking in the polls and trapped in a never-ending scandal for having held numerous parties at his Downing Street residence in 2020 while the country was in strict confinement.

Insufficient aid

UK Hospitality, the hotelier association, warned on Monday that December will be a “disaster” for the industry, and many companies will lose between 40% and 60% of their business, leading to massive bankruptcies without government support. The Labor Party has criticized Sunak for his “radio silence” on the crisis, while the Night Industries Association has urged him to “come out of hiding.”

The aid announced on Tuesday does not meet demands from business groups, who also wanted an extension to tax exemptions beyond March 2022, and looser payment terms for government-backed loans. Some voices in the sector are also calling for the return of the ertes program, which Sunak deactivated in September.