Chancellor Rishi Sunak to return from US trip early over Covid concerns
- Published
Chancellor Rishi Sunak has been in California holding meetings
Rishi Sunak is cutting short a US trip for talks with businesses concerned about the impact of the Omicron variant.
Questions had been raised over the chancellor's absence, on government business, as rising Covid cases hit consumer confidence.
Labour called on Mr Sunak - who has been in California - to "leave Hollywood and come back to reality".
The BBC understands he is returning a day earlier than planned.
A number of firms and business organisations - especially those linked with the hospitality sector - are calling for financial support from the government as new restrictions and warnings over gatherings leads to cancellations and a drop in customers.
But the Treasury has so far declined their plea.
The chancellor, who is due back in the UK overnight, acknowledged it was a "difficult time" for hospitality but said the situation was "very different to what we've done and encountered before".
He added that the government was not telling people to cancel things or closing down businesses.
The UK government and devolved administrations have not placed any additional restrictions on businesses, such as lockdowns or reduced group sizes for restaurants or bars.
But warnings from England's Chief Medical Officer Prof Chris Whitty to prioritise social interactions and from ministers urging people to "think carefully in our choices" in the run-up to Christmas has led to a collapse in customer numbers.
The hospitality industry estimates that December takings will be down by 40% - and the damage could be twice as much as that in London.
UK Hospitality has asked for an extension of the discounted 12.5% VAT rate to stretch beyond its scheduled end in March 2022 to help their members, and for business rates due in the first quarter of next year to be deferred.
And business group the CBI has called for an instruction from the government to tell councils to immediately release unused grants and rates relief to businesses in need.
But the appeals have been made while the chancellor has been in California on government business.
'Heads in the sand'
The BBC understands Mr Sunak travelled to San Francisco on Tuesday to hold meetings with industry leaders from the technology and investment sectors, and hosted a roundtable on Thursday morning.
But the general secretary of the TUC, Frances O'Grady, accused him of being "missing in action".
She told the Daily Mirror: "The chancellor should be stood next to the PM, announcing help to pay wages, save jobs and stop businesses going to the wall."
Mr Sunak tweeted that he and his team had held meetings with the hospitality sector on Thursday, including UK Hospitality and the CBI.
And a Treasury spokesman said he would return early from his trip to to resume discussions with business leaders on Friday.
But Labour called for a plan of action by the end of the day to help struggling firms.
Shadow culture secretary Lucy Powell said places like theatres and gig venues "urgently need some leadership from government", but were instead getting "heads in the sand".
In a statement, Mr Sunak said: "We understand that this is a concerning time for businesses.
"Myself and my wider team met with business representatives earlier [on Thursday], listened to their concerns and will continue to work with industry leaders over the coming days.
"To keep safeguarding our economic recovery and the lives and livelihoods of the British people our priority is now to make sure everyone has the opportunity to 'get boosted now'."