Omicron: Hospitality businesses call for government support

The Red Lion in Manningtree, Essex has been virtually empty since the public was urged by government to limit their contact with others over Covid fears

Hospitality businesses are suffering from a rash of pre-Christmas cancellations and no-shows amid a rise in Covid-19 infections and fears over the Omicron variant. How are business owners feeling - and what do they want to happen next?

'This mixed messaging from government is nothing short of a catastrophe'

Marcus Deaves, who runs Hidden Rooms in Cambridge, has seen parties cancelled

Business owners are on tenterhooks as they wait to see what action the government will take after Deputy Prime Minister Dominic Raab said he could not guarantee there would not be a Christmas lockdown.

For many, such as Marcus Deaves, owner of Hidden Rooms in Cambridge, the hope of a busy December to help mitigate the losses of the past 20 months and tide them over into spring, have all but vanished.

The owner of the 200-capacity table dining service has seen a slew of corporate cancellations for Christmas parties since 30 November.

He hopes the venue can still go ahead with its "legendary" New Year's Eve party, but says requests for refunds have already started coming in.

"We don't bear any grudges over these cancellations," he says.

"I understand that businesses have a duty to protect their staff, but this mixed messaging from government is nothing short of a catastrophe for the hospitality industry.

"I'd like the government to consider the damage already done through its 'limiting interactions' messaging and respond accordingly."

Mr Deaves is calling for a government compensation package.

'It's petrifying, especially at Christmas'

Tom West, pictured outside The Red Lion, is "wishing" for government help for the industry

Publican Tom West, who runs three pubs in Manningtree and Dedham in Essex, and in Ipswich, would also like to see compensation from the government.

On the situation facing hospitality businesses, he says: "It's petrifying, especially at Christmas."

In a post on Facebook, Mr West criticised the government's handling of the situation, adding that business rate and VAT reductions were not effective if they had no sales.

"I fear we are back to the start of previous lockdowns," he wrote.

"I'm ok with being closed, I'm not ok with taking unnecessary financial gambles and risk in business whilst waiting for our leaders to decide their next steps."

Mr West, who employs 60 staff, says his pubs had experienced 580 cancellations, totalling over £20,000, for December, "a month that traditionally provided solid profits for the year could now be [a] loss making festive period."

He wrote: "But what concerns me most isn't the losses, it's the morale of our staff who've stuck with us, now worried they might not have money for Christmas and January.

"Hospitality staff are the best and we are at risk of a second mass exodus."

Mr West's social media post was in the form of a letter to Santa Claus and included a number of Christmas "wishes".

These included the government telling business of its plans for lockdown and any furlough, communicating with one voice, and to "stop leaking stories".

'A fourth lockdown would be devastating'

Philip Mills says the government's recent advice to people to work from home if possible had a "huge impact" on his business

Philip Mills, of Thoroughbreads, Cambridge, says despite a very challenging two years, he took over the building next door to his cafe in July, after becoming "so busy", and also increased the number of staff.

The cafe is located in "Silicon Fen", between the city's business and science parks, so in normal times would have a stream of customers working nearby.

But he says the recent announcement telling people to work from home if possible had a "huge impact" on the business.

He says the firm's busiest period was two weeks ago, but since then trade has dropped by some 45%.

"Our fixed overheads haven't changed; we've now got the new unit and we're just hoping and praying we'll get some government support," he says.

Mr Mills says outside catering to businesses is "a huge part" of the firm's trade and this has also been "dramatically" hit.

"A fourth lockdown would be a challenge; it would be devastating," he says.

He is appealing to the prime minister and the chancellor to offer "at least some sort of targeted furlough" to the hospitality sector.

The hospitality industry has estimated takings in December will be down by 40% - with the damage up to twice that in London.

'The government will continue to engage constructively'

A Treasury spokesperson said: "The chancellor has spoken to a range of business and industry leaders in recent days.

"We recognise how important the festive period is for so many businesses and the government will continue to engage constructively on how it can best provide ongoing support to the businesses and sectors affected."