Covid: Rishi Sunak to hold Omicron crisis talks with businesses

Chancellor Rishi Sunak is set to meet business leaders for crisis talks on Friday as firms warn of lost bookings.

Warnings about the Omicron variant of coronavirus have prompted many people to cancel Christmas dinners and parties, hitting businesses.

Hospitality firms and business groups told the chancellor their trading situation was deteriorating rapidly.

Mr Sunak said the government would do "whatever it takes" to support jobs, but that funding was already available.

On Thursday Mr Sunak was in California, but held a hastily convened call with representatives from business groups and companies, including the Federation of Small Businesses, the CBI, UKHospitality and senior executives from Greene King, Nandos and Whitbread, which owns Costa and Premier Inn.

The Chief Secretary to the Treasury, Simon Clarke, was also on the call.

Attendees described the chancellor in "listening mode". The participants said Mr Sunak appreciated the situation was deteriorating rapidly.

The chancellor asked what kind of assistance they were looking for, and there were specific requests for an extension of the discounted VAT rate of 12.5% beyond its scheduled end on 1 April.

The participants also requested a deferral of any business rates due in the first quarter of 2022, and grants to businesses in most dire need.

There were no specific commitments on the part of the Treasury on measures or timing.

After Thursday's meeting, Mr Sunak then flew back a day early from his US trip where he was meeting technology firms to try to encourage investment in the UK.

The hospitality industry has warned of a devastating effect of public concern over the rapid spread of the Omicron variant of coronavirus.

The British Beer & Pub Association warned on Thursday that pubs would sell 37 million fewer pints over Christmas, losing out on £297m.