When asked what they have most missed since the pandemic began, the ability to go to a pub or restaurant always features highly in the minds of the British public. Yet for many venues, especially pubs, social distancing requirements have made reopening an impractical proposition. An estimated 25,000 licensed venues have yet to reopen, and over 8,000 have closed their doors for good since the start of the pandemic. With the end of restrictions pushed back to the middle of July, and reluctance from ministers to provide further financial support, the prospect of survival looks bleak for many businesses that have barely been able to limp through the last 15 months.
For those that have reopened, social distancing, enhanced cleaning routines, table service where it may not have existed before, and contact tracing have all placed additional burdens on hospitality staff. While all of these measures are necessary to keep us safe and the venues open, the sector is also facing an unprecedented recruitment crisis, which is adding to the risk of burnout among hard-pressed hospitality workers. The sector has relied heavily on the furlough scheme, and for many, furlough has preceded them leaving the industry in search of other careers.
Wetherspoons recently announced that prices of its meals will have to increase by around 40p if the Government fails to maintain the low rate of VAT which was brought in to help the struggling sector. Restaurants are also having to work on reduced hours to avoid staff burnout. The combination of Brexit and coronavirus are leading to significant staff shortages, and the inability of many venues to reopen to sufficient capacity to ensure profitability. Chefs, kitchen porters and front of house staff are all in high demand, as is continued support from the Government.
The Government needs to urgently review its plans to support the hospitality industry in its recovery from the pandemic. The Chancellor must reverse his opposition to targeted sector-specific support, and review how business rates relief can be extended until normal levels of hospitality service have been resumed. Failure to act on this point may mean that many venues are forced to close as they will be unable to survive the period between the end of government support and resumption of normal levels of trade. Additionally, the Government should consider how they can ensure that businesses, especially in London, that rely on international tourists for a large portion of their trade, are able to survive while still waiting for international travel to recover.
The Government must support the sector’s attempts to boost staffing levels and ensure that dynamic careers are available for those who work within it. Not only should the government consider the sector’s proposals for 18-month or two-year work visas for those wanting to come to the UK to work in the sector, as well as funding a national careers drive to attract applicants to the sector.
Throughout the pandemic, the Government has spent vast sums of money to keep various industries afloat and keep people from being made unemployed. If, as we all hope, the planned July date for the end of restrictions does mean that life can get back to normal, it is crucial now for the Government to ensure that the hospitality sector is able to recover promptly. London has a world-class hospitality sector, and failure to adequately support it could result in further job losses and more closures of the places we all love.