The release of figures today by the Office for National Statistics (ONS) highlights the scale of the crisis currently being faced by hospitality businesses and emphasises the need for additional support for the sector, according to UKHospitality.
UKHospitality Chief Executive Kate Nicholls said: “The figures released by the ONS today underline the dreadful hit that hospitality has taken during this crisis and reinforces the urgent need for targeted support.
“Our sector has seen the highest fall in jobs of any. We are entering another period that is likely to be incredibly difficult for us. Businesses are in lockdown once again and when they do reopen, it will be back into a severely restrictive environment.
“Extension of the furlough scheme will provide some protection but scrapping the Job Retention Bonus Scheme is a major blow at a time when things could not be tighter – dramatically impacting on cashflow and potentially making businesses technically insolvent. Furlough will still mean that employers must pick up the cost of National Insurance Contributions (NICs), while receiving no revenue. The majority of businesses are operating at a loss, with little to no financial reserves and the prospect of a bleak winter ahead.
“Government support should recognise that hospitality is being asked to operate under the toughest restrictions of any sector and being given the highest mountain to climb in order to survive – we need a new approach from 3rd December.”