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8 out of 10 hospitality businesses now closed or unable to trade as Christmas bookings collapse under new tiers

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8 out of 10 hospitality businesses will be closed or unable to trade under tier 2 when the new tier system comes into force from Saturday.

After yesterday’s tier announcement from health secretary Matt Hancock, Christmas bookings for venues up and down the country have collapsed as travel restrictions impact the whole hospitality industry with many businesses now fearing for survival.

From December 19 at 12.01am, eight new areas will be placed into tier 3, the highest alert level, meaning hotels, pubs and restaurants will have to close and only permitted to serve takeaway or delivery.

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Bristol, Somerset and Herefordshire moved down a tier.

Taking to Twitter, Kate Nicholls, chief executive of UKHospitality said that over half of businesses have insufficient cash reserves to survive more than three months, with the industry burning through £0.5bn cash each month.

She said: “We need a clear exit strategy at the next tier review to allow businesses to trade their out of the economic devastation and protect jobs. Furlough alone is now insufficient to do that when employers have to pay 5% with no revenue coming in.

“We need government to extend business rates holiday and reduced VAT rate through whole of next year to support recovery and to make an announcement on that ASAP to underpin investment and stave off business collapse.”

Tags : hospitalityKate Nichollstourismtravel
Zoe Monk

The author Zoe Monk

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