Advertisement
Employment

Hospitality sector ‘could lose one million jobs’ if lockdown isn’t eased

Boris Johnson will announce a ‘roadmap’ out of lockdown on Monday but hospitality leaders warned the struggling sector could be forgotten

Boris Johnson has been warned that the hospitality sector could lose one million jobs if he doesn’t commit to reopening pubs, restaurants and venues, as Labour continued to call for an extension to the furlough scheme to stem mass redundancies.

The Prime Minister will announce a “roadmap” out of lockdown on Monday, but trade body UKHospitality warned the struggling sector could be overlooked and urged him to name a date for its reopening. 

Lockdowns have taken income away from hundreds of Big Issue sellers. Support The Big Issue and our vendors by signing up for a subscription.

Kate Nicholls, chief executive at UKHospitality, told The Independent uncertainty was “crippling” investment when many businesses were running out of cash and facing collapse.

“Our big fear is that we’re not going to get clarity on Monday,” she said. 

“That would just mean that businesses can’t plan at all. And I think that if that’s the scenario, you will accelerate decisions about redundancies and business administrations.” 

Advertisement
Advertisement

Meanwhile, Labour has called for an extension to the furlough scheme, which sees the Government pay up to 80 per cent of workers’ wages and has already been extended once until the end of April.

Sadiq Khan, the London mayor, told Sky News the Government has to “learn from the mistakes of the past” and continue to provide help for struggling industries.

“It is really important for the Government on Monday to confirm that our hard-pressed businesses will be getting the support they need,” he said. 

“We need an extension of the business rates holiday, an extension of VAT relief, an extension of furlough [and] increased support for those self-isolating to support our businesses during this difficult time.” 

Khan added it was important for individuals’ livelihoods that lockdown was lifted sensibly and support for the most vulnerable was continued.  

“I’m afraid the Government has also got to realise that the health of individuals is linked with the health of our economy.

“They are intertwined. That’s why it’s really important we don’t prematurely come out of lockdown This must be the last lockdown we have.” 

Get free training, careers advice and access to hundreds of thousands of jobs with The Big Issue’s RORA Jobs & Training

The latest figures from the Office of National Statistics show more than a million people working in the hospitality sector were still furloughed at the end of January.

Hotels, pubs, restaurants and other entertainment venues have been shuttered for much of the last 12 months as repeated lockdowns have forced them to close. UKHospitality claims the industry lost £72 billion in sales in 2020. 

Last summer, Chancellor Rishi Sunak launched the Eat Out to Help Out scheme, offering diners subsidised meals in a bid to inject life into the struggling sector. 

But after another two national lockdowns, industry leaders said a firm open date was needed to save jobs and businesses.

Yesterday, UKHospitality announced its own “roadmap” out of lockdown and Nicholls said it was clear hospitality could safely resume from April.

“It’s clearly important the Government follows the data, and we understand the point, but the data is showing that we can move swiftly, safely and sustainably to reopen hospitality in April,” she said.

“Businesses need firm dates to plan their reopening strategies, so they can bring back staff, negotiate their rent with landlords and re-engage with all their suppliers. 

“We urge the Government to provide that certainty and to underpin the recovery with business support: extending the 5% VAT rate and the business rates holiday will stimulate consumer demand and help reduce costs. 

“These measures are vital in returning hospitality to being an engine of economic and employment growth.” 

Have you been affected by the economic impact of the coronavirus pandemic? The Big Issue is committed to supporting its readers and find ways to help people stay in their jobs and in their homes through our Ride Out Recession Alliance. Send your stories and ideas to rora@bigissue.com to help us support those who need it most.

Advertisement

Become a Big Issue member

3.8 million people in the UK live in extreme poverty. Turn your anger into action - become a Big Issue member and give us the power to take poverty to zero.

Recommended for you

Read All
Disabled people losing jobs and 'falling out of work' due to months-long waits for DWP support
disabled person working
Disability rights

Disabled people losing jobs and 'falling out of work' due to months-long waits for DWP support

Pay boost for millions as Labour raises minimum wage to £12.21 an hour – but is it enough?
Minimum wage

Pay boost for millions as Labour raises minimum wage to £12.21 an hour – but is it enough?

Pay rise for thousands of workers as Real Living Wage rises to £12.60 an hour – but is it enough?
real living wage

Pay rise for thousands of workers as Real Living Wage rises to £12.60 an hour – but is it enough?

DWP wants to send job coaches into mental health hospitals. Here's why it's a 'dangerous' idea
Employment

DWP wants to send job coaches into mental health hospitals. Here's why it's a 'dangerous' idea

Most Popular

Read All
Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits
Renters: A mortgage lender's window advertising buy-to-let products
1.

Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal
Pound coins on a piece of paper with disability living allowancve
2.

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal

Cost of living payment 2024: Where to get help now the scheme is over
next dwp cost of living payment 2023
3.

Cost of living payment 2024: Where to get help now the scheme is over

Citroën Ami: the tiny electric vehicle driving change with The Big Issue
4.

Citroën Ami: the tiny electric vehicle driving change with The Big Issue