Kate Nicholls, the chief executive of trade association UK Hospitality, said: “We currently have 900,000 workers in hospitality whose jobs are supported and protected by the furlough scheme. We are concerned that without a further extension of the furlough scheme, many businesses will not be able to afford to sustain the job levels they have at the moment.
She also feared the latest restrictions, such as the 10pm curfew for pubs, meant businesses would shift their focus from recovery to survival.
She said: “Businesses were on the road to recovery. Over the summer, with Eat Out to Help Out and with a return of consumer confidence, momentum was building and businesses returning.
“But the announcement on Tuesday significantly cut operational hours and therefore revenues. And that is not sustainable in the current environment. They simply won’t be able to maintain those jobs.”
She added that the VAT cut for the sector must be extended, as must the business rates holiday.
Rain Newton-Smith, the chief economist at the Confederation of British Industry, told how many businesses were “still on their knees” following the first wave of the virus.
She said: “The Job Retention Scheme has kept millions afloat – ending it with no successor scheme will deliver a significant blow to so many employees and firms.
“Many businesses are still on their knees and a new scheme that incentivises businesses to keep more staff in work, will help everyone to get through the next six months.”
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Meanwhile, Mike Cherry, the chairman of the Federation of Small Businesses, warned: “As we’re hit by a second phase of COVID-19, it’s paramount that the Government urgently steps forward with an ambitious second round of support measures to help firms survive.
“The job retention scheme is ending in six weeks and the deadline for bounce back loan applications is approaching.
“Many businesses – particularly those at the heart of our night-time economy and events industries – are now seriously fearing for their futures.”
