Ian Wright CBE, chief executive of the Food and Drink Federation (FDF) has welcomed the extension to the furlough scheme but insists Government must do more in order to protect and support hospitality businesses during the second lockdown.
Prime Minister Boris Johnson announced a second lockdown for England which will come into place on Thursday 5th November until the 2nd December following a rise in coronavirus cases.
The new measures will see restaurants, pubs and bars forced to close, however they will still be able to offer takeaway and delivery services.
Johnson also announced an extension to the furlough scheme, which was due to finish at the end of October, before being replaced by the less-generous Job Support Scheme.
“If hospitality, the sector that is our country’s third largest employer, is to survive and help drive economic recovery, it will need equivalent – or more – support than that of the first lockdown.”
This will see the Government continue to pay 80% of the wages for workers in businesses that have been impacted by the pandemic.
Ian Wright CBE, chief executive of the FDF, is calling on Government to do more in order to protect businesses and jobs within the foodservice sector. He said: “Confirmation that the furlough scheme will be extended is extremely welcome news for food and drink businesses who continue to feed the nation. However, we need further clarity that the food supply chain will be supported sufficiently.
“Without further reassurance thousands of jobs will be under threat as businesses consider closing their doors for good. The economic impacts of this decision threaten calamity unless we see further details of a rescue package in the next 72 hours.”
Further reaction
UKHospitality chief executive, Kate Nicholls, said: “Public health objectives are, rightly, the motive for the new measures, and for that reason we entirely support whatever proportionate action is necessary.
“The costs to hospitality businesses of a second lockdown will be even heavier than the first, coming after periods of forced closure, the accumulation of mass debt and then significantly lower trading due to the restrictions of recent weeks. The sector was hit hardest and first, and this recent shutdown will hurt for months and years to come. The extension of furlough for a further month does help to protect our workforce during this difficult time.
“If hospitality, the sector that is our country’s third largest employer, is to survive and help drive economic recovery, it will need equivalent – or more – support than that of the first lockdown.
“Hospitality businesses have already been pushed to the limits, with many closures already. For those that have survived, viability is on a knife edge, as is the future of the tens of thousands of businesses and hundreds of thousands of jobs that depend on hospitality, including through its supply chain, right across the country.
“It is critical that businesses are given a lifeline to survive the winter, before being given the support to enter a revival phase in 2021, as the nation’s prospects improve. A clear roadmap out of lockdown and through the tiers will also be vital for businesses to plan their survival, and the safeguarding of hundreds of thousands of jobs.
“It is important to remember that some parts of hospitality, such as nightclubs, have not even been allowed to re-open. The support for those, now that potential reopening has been kicked further into the future, must be redoubled to ensure that they are not lost forever.”
Mark Lynch, partner at Oghma Partners, a financial advisor for the hospitality and foodservice sector, added: “The second lockdown is another blow for the food-to-go and hospitality industry. With another four to six-week break in prospect and the potential for a further lockdown in the New Year, as we approach Easter, the fear will be that this will not only impact current trading but will also lead to further business closures. Furthermore, the overall damage to the economy could weaken demand on a medium term not just a short-term basis.
“For the foodservice suppliers a tough year has just got tougher and the prospects look difficult until perhaps next spring when increased outdoor activity should reduce the disease’s prevalence.”
