The hospitality sector has accused the UK government of throwing it “under the bus” as more businesses were moved to Tier Three.
The comments came as the ONS reported that the hospitality sector had lost the most jobs across the economy in November.
Hospitality was the worst-hit sector, accounting for a third of the job losses, at 297,000, according to the ONS.
"It you look at the number of people losing their jobs, the number of people on furlough and the vacancies available for people looking for jobs in the hospitality sector, all that adds up to a very difficult time for that industry," the ONS's director of economic statistics, Darren Morgan, told the BBC.
UKHospitality CEO Kate Nicholls said: “There’s still no hard evidence that hospitality venues are a significant contributor for the spike in infections. Cases were higher at the end of the last lockdown – during which hospitality was shut down – than at the start. The spread is being predominantly driven through schools – even the Mayor of London has pointed this out and called for schools to stay shut until January. Yet, once again, it is hospitality that will take the hit. The government is cracking down on hospitality for an increase in the infection rates that occurred during a period when hospitality was forcibly closed. It makes no sense.
“So many pubs, restaurants, bars, cafes and hotels, having invested so much to make their venues safe, are only just clinging on by the skin of their teeth, but will be forced to take another huge hit. The burden of a region being moved into Tier Three falls almost exclusively on hospitality businesses. It is an illogical tactic that fails to tackle Covid effectively but does push businesses closer towards failure.
“The government must re-think its strategy to combating the spread of Covid, including moving areas like Manchester, Leeds and Birmingham into Tier Two. Just continuing to batter hospitality is not the answer.”
Robin Hutson, CEO, The Pig and Limewood hotels, objected to comments from ministers that hospitality businesses could move to takeaway, commenting: “ The difference is there's an opportunity for most retail to sell products online, it’s difficult to sell a virtual bedroom for the night! We want to know why are you throwing hotels and hospitality under the bus.”
The sector has moved behind a petition to create a minister for hospitality in the UK government, driven by the Seat At The Table campaign. At the time of writing there were close to 150,000 signatures, past the 100,000 point where the government has to “consider” a petition.
The government responded that it recognised “the importance of the UK’s hospitality sector, which plays a vital role in supporting local communities up and down the country and the UK economy. The sector is extremely broad, ranging from the arts and entertainment to pubs, cafes and restaurants, and as such responsibility for the sector as a whole is shared by the Department for Business, Energy & Industrial Strategy and the Department for Digital, Culture, Media & Sport.
“Ministers in both Departments have worked closely with business leaders and representative bodies from across the sector throughout the pandemic to ensure that the interests of the hospitality businesses and their employees are fully represented within Government. Hospitality sector business leaders were consulted on the Government’s Covid-Secure Guidance for businesses, and Ministerial engagement with the sector has helped to shape the Government’s extensive package of business support measures, which has included the job retention scheme, reduced VAT, rates relief, the commercial rent moratorium, hospitality grants, loan support schemes, the self-employed income support scheme, regulatory easements to support outdoor hospitality and the Eat Out to Help Out scheme.”
Insight: So, in the words of the government, you’ve had yer lot, now get on with it. As Robin Sheppard chairman of Bespoke Hotels, noted: “How would you like our industry? Battered?”
As the signatures continue to increase, it is hoped that the sector’s voice will be too loud to ignore, but it is staring down the barrel of a very hard winter indeed and it doesn’t help matters to look overseas, where countries such as France and Germany have given their backing to hotels and restaurants, eager as they are to go for a meal out once the virus has passed.
It’s hard to unpick the logic of a government which has so little enthusiasm for a sector. Fuller, Smith & Turner chairman Michael Turner put it rather well when he said: “In the short term, we need clarity of message and a clear roadmap out of the coronavirus crisis. We know we can play a major role and we relish the challenge of doing so.
“Should the Chancellor need any further encouragement, the net tax deficit from Fuller's alone for the first six months of the year is over £70m. The country needs pubs, restaurants and hotels fully open - and soon - for the financial contribution they make, the jobs they create, and the significant role they play in the emotional wellbeing of our customers and our teams.”
Maybe the empty coffers will speak the loudest.