Omicron: Hospitality firms still want more support from government

Many pubs and restaurants have been hit by cancellations in the last two weeks

The chancellor has set out measures to help hospitality firms suffering cancellations and no-shows amid a rise in Covid-19 infections and a collapse in customer confidence. What do businesses who called for support think about Rishi Sunak's £1bn announcement?

'It costs me £6,500 a month to stay closed'

Marcus Deaves, who runs Hidden Rooms in Cambridge, says there is still too much uncertainty over Covid restrictions

Eligible hospitality businesses will be able to get grants of up to £6,000, which Marcus Deaves, owner of Hidden Rooms in Cambridge, says is "not bad news; it goes some way".

He emphasises he will have to look at the detail of the scheme and whether he will be available to claim.

But he says there is still too much uncertainty over further Covid restrictions.

"We definitely need clarity. If we are not going to be open we need to plan for that, and if we are [open] we need to plan for that," he says.

The owner of the 200-capacity table dining service says it "costs £6,500 a month to stay closed, and that's without wages for the staff".

He says: "All the utilities need to stay paid and we need to pay for cleaning - today we've had a deep clean.

"We haven't had a great 18 months and that's down to the lack of planning; it's that limbo we've been in.

"Business owners won't have a good Christmas and it will trickle down to staff as well."

'It sounds a lot but it is nowhere near enough'

Tom West, who runs The Red Lion in Manningtree and three other pubs, is calling for the return of furlough

Publican Tom West, who runs three pubs in Manningtree and Dedham in Essex, and in Ipswich, says he was "shocked" by Mr Sunak's announcement.

"First, in the delivery and second in the amount. I'm in despair," he says.

The £6,000 grant for businesses "just is not enough", he says.

"There is still no clarity if we still need to buy more beer or food.

"We don't know if we are going to be open on the 28th onwards, which is a date there have been rumours about, and what happens to our employees who've just lost 30% of their hours.

"That's the bit that really hurts; what do I do for my employees?"

He says £1bn "sounds a lot but it is nowhere near enough", and the grants will not cover the costs of business rates and rent.

Mr West adds: "What worries me is we get to Easter, we get back to normal trade, but who is going to work in the hospitality industry?

"We need the return of furlough."

'We need a long term solution'

Philip Mills says the money will help but will not go far enough

Philip Mills, of Thoroughbreads, a coffee shop and catering business in Cambridge, says of the chancellor's announcement: "As grateful and relieved as I am, it's bit of sticking plaster scenario.

"It'll cover the overheads for a week or two."

The worry for him, he says, is what will happen to business "going forward in the medium-to-long term".

Mr Mills says the grant of up to £6,000 is "great, but that doesn't really secure our future for the next month, it'll be mostly swallowed up by the weekly wage bill".

He says the his turnover is down 65-70% and "January is historically quite a quiet month".

"I'm pleased they announced something but we need a solution for businesses in the long term," he adds.

What did the chancellor announce?

The Chancellor Rishi Sunak unveiled a £1bn fund including cash grants of up to £6,000 per premises for each eligible firm.

He said the government would also help certain firms with the cost of sick pay for Covid-related absences.

He highlighted support already in place that will last through to next spring, citing a reduced rate of VAT for the tourism and hospitality sectors and a discount on business rates.

The chancellor also announced an extra £30m to help theatres and museums.