One million jobs at risk from coronavirus in pubs, restaurants and hotels ‘unless furlough scheme extended to July’
UP to one million jobs are at immediate risk in pubs, restaurants and hotels across the UK unless the government wages furlough scheme is extended until July according to a leading trade body.
UKHospitality warns that many large firms may have to start making redundancies within days because they are not bringing in any revenue during lockdown.
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The association is calling for the “positive” furlough scheme to be extended until at least the end of July - with the hospitality sector at the front of the queue for much-needed support.
Today, its qualifying start date was pushed back from the end of February to 19 March 2020. But the scheme is due to finish at the end of May.
Without a longer extension to the wages scheme, UKHospitality reckons around one million sector jobs are in jeopardy - about half of 2.4million already furloughed in the key industry.
Venues such as pubs and restaurants will find it difficult to meet their costs while any social distancing measures are in place, it says.
That applies even if they are allowed to re-open.
CEO Kate Nicholls said: “The Government’s positive scheme to protect people’s jobs will fall short if not extended beyond May.
"Many businesses have absolutely no revenue at the moment and would need to start making redundancies in the coming days.
“Even when restrictions are lifted, lots of customers will be cautious about going out to pubs and restaurants for a while.
"If we want to keep people in jobs through this difficult period and into recovery, then the Chancellor must provide more support.”
Half a million hospitality workers have already lost their jobs because of the pandemic and another half a million seasonal workers will not now be hired.
Yael Selfin, chief economist at KPMG commented in a research note: “Curbs on social gatherings, including after the lockdown is lifted, could see a third of the output in hotels and restaurants lost this year.
“The hospitality industry will also find it harder to recover lost output next year; cancelled travel plans and restaurant bookings will mostly be gone for good, unlike manufacturing and construction, where there should be a stronger rebound already this year thanks to back orders that can be filled once the lockdown is over.”
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Jobs are also at risks in other sectors hard hit by the shutdown.
The British Retail Consortium says “hundreds of thousands are at risk” after lockdown triggered a massive sales slump.
Today, Oasis and Warehouse appointed administrators, putting 1,800 jobs at risk.
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