£1million jobs at risk across hospitality sector

Good news for recovery, but by no means touching the revenues of last year. 

Although the industry has coped admirably with the new procedures and matching reduced staffing to demand, many are working hard just to stand still with a challenging Winter period to come.

The end to the furlough scheme next month, will undoubtedly pose further tough questions for our tourism businesses with UK Hospitality warning one million hospitality workers are at risk of redundancy nationwide. 

Urgent Government support is needed

There was hope that the Chancellor Rishi Sunak would announce further industry specific support or an extension of the furlough scheme in his Autumn Budget, however this looks unlikely to come before the 31st October deadline and might be pushed back further due to the recent rise in corona virus cases.

Permanent 5% VAT reduction

The industry still has a level of support into 2021 with the VAT reduction to 5% continuing to 12th January, and there has been much cross party support for this to continue.

UK Hospitality chief executive Kate Nicholls, was quoted on The Caterer website last week stating;

" As we move away from the peak tourism season, it is encouraging to see all parties looking at ways in which Government can support these vital sectors through the winter.”

"A permanent cut in VAT would level the playing field with the UK's international competitors, enabling tourism and hospitality businesses to survive over the winter, before helping to drive the UK's economic recovery in 2021."

Gill Haigh, Managing Director of Cumbria Tourism, has additional concerns regarding consistent messaging from central Government with the respect to the new guidelines limiting parties to six people, which have resulted in families over that number cancelling their reservations.

“Businesses are reporting that the latest restrictions have knocked the confidence of our visitors, some of whom are postponing or cancelling visits when they don’t really need to. That’s why we have already written to the Government to ask for further clarification so people are crystal clear on what they can and can’t do. In the meantime, our advice to visitors who are unsure is to chat directly with their accommodation provider who can give them that additional reassurance.”

It seems for our industry to survive into 2021 central Government support needs to be more than just financial in these troubling times.

LDHA Voice is a collection of independent tourist and hospitality businesses in the Lake District and Cumbria.   Collectively working together to adapt, support and lead important conversations with local and national authorities on topical challenges and opportunities.