‘Catastrophic’: Hospitality and leisure industries sound alarm over Johnson measures

The UK’s hospitality industry issued a doom-laden warning last night after Prime Minister Boris Johnson yesterday told Brits to steer clear of pubs, eateries and theatres as the government escalated its coronavirus “fightback”.

In a statement which Johnson acknowledged was unprecedented in peacetime, he urged Londoners in particular to “avoid all non-essential contact” with others and work from home wherever possible, as the spread of Covid-19 in the capital appeared to
be a “few weeks ahead” of the rest of the country.

Updating guidance to the public, Johnson announced that those in the most high-risk groups, including those with long-term conditions, those over 70 and pregnant women, should shield themselves from social contact for 12 weeks.

Furthermore, any household which has a single member displaying symptoms should self-isolate for 14 days.

As businesses and the wider public absorbed the latest measures, an almighty row erupted between the cultural and hospitality sectors and the government, with one industry body saying Johnson had “now pulled up the life raft”.

Though the Prime Minister told Brits to avoid large gatherings and forgo pubs and restaurants, he stopped short of mandating their closure as governments have done across Europe — with serious implications for businesses’ ability to claim on insurance.

“This is catastrophic for businesses and jobs,” UK Hospitality chief executive Kate Nicholls said.

“The government has effectively shut the hospitality industry without any support.”

“The PM’s statement is the worst of all worlds leaving businesses, guests and teams all unprotected and in limbo. No insurance will apply unless the Government requires closure and even then any payout will come far too late to save millions of jobs,” she added.

Emma McClarkin, chief executive of the British Beer & Pub Association, said the “very existence of some pubs is now at threat,” she said.

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Hospitality venues in London had already reported a 47 per cent drop in year on year footfall on Sunday and some firms are around a month away from running out of cash.

The anger was mirrored by the UK’s creative industry bosses, with Caroline Norbury, CEO of the Creative Industries Federation and Creative England, describing it as a “crippling blow.”

“As the social distancing measures announced this afternoon are only advisory, rather than an outright ban, we are deeply concerned that creative organisations and cultural spaces will find they are unable to claim compensation for the huge losses they will experience as a result of COVID-19,” she added.

Jonathan Downey, the chief executive of street food market operator London Union said the decision to advise customers to stay at home rather than close venues is a “passive aggressive lockdown”.

“I understand how they are saving lives, but I don’t understand how they are planning to save livelihoods,” he added.

All called for urgent support from the government. Chancellor Rishi Sunak held an emergency meeting of a new Economic and Business Response Council yesterday, with sector-specific meetings to come.

It follows a number of measures included in last week’s budget.

Sunak said “we are doing everything we can to can to keep this country, and our people, healthy and financially secure.”

Last night a government spokesman told City A.M. that they understand the “considerable impacts” placed on business by yesterday’s announcement.

“We will continue to engage with business to discuss what support they need in this challenging period,” they added.