Coronavirus: Liverpool restaurant owner 'could never repay loan'

Peter Kinsella said he was crying while writing the letter

A restaurateur says he will "never be able to repay" a government loan for businesses hit by coronavirus, in an open letter to the prime minister.

Peter Kinsella, who runs Lunya in Liverpool and Manchester, said he was "terrified and so worried" for the business and its 105 employees.

Chancellor Rishi Sunak told a Treasury Select Committee earlier that such loans were long term.

He said he believed Lunya would recover and "generate profits to pay it back".

The chancellor was responding to Wirral MP Alison McGovern, who brought the letter to his attention.

Mr Kinsella said he was crying while writing the letter, which he tweeted.

"A loan will come with liabilities and expectations of repayment.

"We were already struggling before this (but just about managing), we will never be able to repay that loan no matter how successful we are in any post-Covid world," he wrote.

Fine dining to fast food

Mr Kinsella met 20 other Liverpool restaurant owners earlier to discuss plans and react to Mr Sunak's proposals to protect small businesses.

Dave Critchley, head chef at Lu Ban, where they met, said he would change from fine dining to fast food, offering a click-and-collect service and run a delivery service, while others are turning their businesses into takeaways.

The restaurateur says he is "terrified" for the business and its staff

Lu Ban director David Hughes said allowing businesses quick access to cash to pay staff was the biggest issue.

"If people have to close next week we are probably going to have a million people without a job.

"They are going to be contacting HMRC to claim benefits... give the cash to the businesses and the business can pay the employees," he said.

'Be responsible'

All business in the city were "massively" worried, said Chris McKenna, from lobbying group Downtown Liverpool in Business.

Mr Kinsella said "by the hour more and more places are shutting their doors".

He said the restaurants did not want to provide "a temptation for people to break government advice".

"The government don't want people sitting in and eating. We now need to be responsible," he added.

Restaurant owners met in Liverpool earlier to discuss their response to coronavirus

Lunya said it would keep its deli and delivery service open.

Responding to Mr Kinsella's letter, Mr Sunak promised to keep the situation under review.

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"These are long-term loans with no interest payable for the first six months," the chancellor said.

He added that Lunya sounded like "a very successful and popular restaurant" that would "get back to health and... generate the profits to pay it [the loan] back".