Pubs, restaurants and hotels must get furlough scheme extended for another YEAR to save millions of jobs, MPs warn
PUBS, restaurants and hotels need the furlough scheme extended for another year to save millions of jobs, MPs have warned. Politicians from multiple parties have signed a letter to the Chancellor Rishi Sunak urging him to step in to save the industries “from ruin”. Furloughed workers currently have 80 per cent of their wage subsidised up […]
PUBS, restaurants and hotels need the furlough scheme extended for another year to save millions of jobs, MPs have warned.
Politicians from multiple parties have signed a letter to the Chancellor Rishi Sunak urging him to step in to save the industries “from ruin”.
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Furloughed workers currently have 80 per cent of their wage subsidised up to £2,500 a month.
However, Mr Sunak has confirmed he will soon start weaning off the government support meaning businesses will have to pay towards salaries for staff on the furlough scheme.
The scheme will continue until the end of October, but now MPs have warned it must go further.
In a letter organised by the former Liberal Democrats leader Tim Farron, opposition politicians have claimed a third of workers in the hotel and food industry are at risk of losing their jobs, with tourism facing a shortfall of billions.
They believe the need the extra support because not only are the pubs, restaurants and hotels currently unable to open, they still have no date for when things can get back to normal.
The two metre rule means businesses will struggle to have as many customers, and the number of people travelling to destinations has completely collapsed.
It says: “The hospitality and UK tourism industry are among the hardest hit by the necessary social distancing policies in place.
“If the industry does not receive funding to see them through the next year, millions of jobs will be lost.
“In many places where industries such as retail are completely integrated with the visitor economy, we will see entire communities devastated as the tourism industry suffers.
“Councils must be provided with a specific funding stream to administer financial support to restaurants, cafes, pubs, hotels, guest houses and visitor attractions, along with other dependent industries.”
They are demanding the Government extend the furlough scheme for 12 months as well as a 12 month support package.
The letter is signed by 28 MPs from multiple parties, including the Lib Dems, SNP, Labour and DUP.
Also signing was Dr Lisa Cameron of the SNP, who demanded a long-term plan to save the industry.
She said: “Tourism and hospitality sectors are amongst the hardest hit industries, missing this years summer season and with the majority of their staff furloughed with jobs at risk.
“The Government must support a long-term plan to sustain our tourism industry, including encouraging UK staycations when coronavirus restrictions lift”.
Mr Farron revealed his own area was already struggling to stay afloat, with research suggesting coronavirus may have cost Cumbria £1.45 billion by the end of this month.
Speaking to The Sun, he said: “The lockdown measures are essential to tackle coronavirus, but as we know tourism and hospitality establishments will be the last to reopen.
“Without further financial support from the Government, many are facing hardship, if not ruin.”
The call was welcomed by the British Beer & Pub Association, who have previously urged the two metre rule to be relaxed to save the industry.
Chief executive Emma McClarkin said: “If the Government doesn’t reduce its social distancing guidance from two metres to one metres before pubs can re-open, then thousands of our pubs will remain closed beyond July with no clarity on when they can re-open.
“If that happens then the Government will need to significantly increase support for our sector including pub and hospitality specific furlough support.
“The pub and hospitality sector will be impacted for the longest period of time and it will take a long time for trade to rebuild so extended furlough would recognise the long journey back to normal trading levels they will experience and will stave off job losses.”
The British Beer & Pub Association have previously warned that the confusion risked deepening the crisis already facing the sector and said pub owners needed certainty in order to plan.
It said the Government must stick by its commitment to reopen pubs from July 4 or face millions more job losses. Pubs also want the Government to reduce the two metre social distancing rule to one metre.
Brits are currently severely limited in their holiday options, with any overseas travel requiring a 14 day quarantine.
There is currently no definitive date for when hotels and holiday homes can reopen in England, but many are preparing for a July 4 start date.
Currently, travelling to Scotland is not allowed, as non-essential travel is still banned.
There is no official date for when the tourism industry in Wales can restart.
While the Welsh Government “hopes to be able to say something positive” when lockdown restrictions are reviewed, this isn’t likely to be discussed until July 9.
Overall, 27 million people are having their wages, pension, furlough or Universal Credit paid for by the state – which adds up to more than half of all adult Brits.
