Coronavirus

More than 750,000 hospitality jobs under threat without support

Over 750,000 jobs in the hospitality sector are under threat without government support, according to a survey carried out by leading trade associations.

UKHospitality, the British Institute of Innkeeping and the British Beer & Pub Association found 76% of respondents were loss making before the government’s tier lockdown system was announced.

Some 50% of respondents believe that the restrictions in place will reduce their turnover by at least half this winter. 

Currently, the prediction for total business failure by the end of this year is now estimated to be more than 1 in 4 and over 50% of businesses are now expected to fail before the end of Q1 in 2021.

With the furlough scheme ending in two weeks, the trade bodies described businesses in medium and high risk tiers as being in “no mans land” as the Job Support scheme is not viable for most hospitality businesses.

A joint spokesperson for the trade bodies said: “There can be no doubt of the devastating impact that the Government’s restrictions are having on hospitality and pub businesses across the UK.

“Without urgent sector-specific support for our industry, massive business failure is imminent and hundreds of thousands of jobs will be lost around Christmas from a sector that was in growth at the beginning of this year, as well as in the supply chain that supports them.”

They added: “While there are any restrictions placed on hospitality and pubs, there must be financial support in place across all tiers of risk.”

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