Mixed reaction to latest Covid package for firms

Pubs, restaurants and theatres have welcomed new government grants to help them deal with a collapse in consumer confidence caused by Omicron.

But others, including beauty salons and nightclubs, said the package was merely scratching the surface.

Under the plans, hospitality and leisure firms can apply for grants of up to £6,000 per premises.

There will an extra £30m for the arts, and councils will get a further £100m to help businesses at their discretion.

Eating and drinking out are two activities that have been blighted by the latest variant of Covid.

Although pubs and restaurants remain open and have not been subject to new restrictions, many people have been reluctant to visit them for fear of catching the virus.

The British Beer & Pub Association's chief executive, Emma McClarkin, said: "This short-term package of support from the chancellor is welcome at this extremely challenging time for pubs and brewers.

"It will be a vital lifeline for many and will help compensate businesses for the dramatically reduced trade already being experienced in the run-up to Christmas."

But the response was two cheers at best from independent Liverpool bar operator Ma Pub Group who called it "a start at least".

"Without furlough for now, the plan is to let us stay open, but the reality remains that trade has dropped hugely at the busiest time of the year for hospitality.

"The point is that it costs me more to stay open than when we are closed and while I don't think anyone is expecting to have all lost Christmas sales reimbursed by the government, the £6,000 grant is a drop in the ocean at this time of year."

Hair and beauty salons face particular problems, since it is not possible to observe social distancing when undergoing most of the treatments involved.

However, the sector has received no targeted help as part of the latest measures, although businesses can still apply for an Additional Restrictions Grant, distributed by local councils to businesses outside leisure and hospitality at their own discretion.

"Hair and beauty has been one of the hardest hit sectors by the pandemic," said Richard Lambert, chief executive of National Hair & Beauty Federation.

"Our latest NHBF snap poll, from last week, demonstrates that over 70% of salons are experiencing unprecedented cancellations which will have a huge impact on their turnover.

"In the past, the government has called our industry 'essential' to UK GDP and well-being, so it's unfathomable that they are not giving any financial support to help save previously highly profitable salon businesses and those they employ."

The night-time economy is also badly served by the package, says nightclub operator Rekom, which has more than 40 venues across the UK.

Peter Marks, chairman of its UK board, said the government had not done "anywhere near" enough.

"Given the fact that we would have made around £60,000 per premises per December, this covers just 10% per venue, so barely scratches the surface," he told the BBC.

Mr Marks warned that the £6,000 would not take into account the size of the businesses, meaning larger operators would be disadvantaged.

Michael Kill, the chief executive of the Night Time Industries Association, said the measures "border on the insulting".

"The open-close strategy is crucifying businesses," he added.

Theatres and museums saw themselves as more fortunate.

Stephanie Sirr, chief executive of the Nottingham Playhouse and president of UK Theatre, told the BBC, she felt the Treasury had "clearly listened" and was "very grateful".

However, as this period is when theatres make most of their money, she explained that the challenge was the size of the problem because of the timing.

Travel industry trade body Abta said the chancellor's statement "once again ignores the direct impact" on businesses reliant on international travel.

"Travel agents, tour operators and travel management companies will rightly be asking why they haven't been given the same treatment as other businesses that are suffering at this time," Luke Petherbridge, ABTA's director of public affairs, told the BBC.

The head of trade body Airlines UK, Tim Alderslade, also said the travel industry would need similar support if the government's travel restrictions review on 5 January did not announce more help.

"We've done everything possible to preserve cash, as the chancellor asked us to. He now needs to either open up travel or provide the same support a offered to other sectors."