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Home Business News ‘250,000 London hospitality jobs at risk’ over tier 2 restrictions

‘250,000 London hospitality jobs at risk’ over tier 2 restrictions

by Mark Channer LLB Journalist
15th Oct 20 4:12 pm

According to a industry trade body, the new tier 2 restrictions that will start from Saturday will place 250,000 hospitality jobs at risk.

UK Hospitality chief executive Kate Nicholls said that without additional government support, hundreds of thousands of jobs in London will vanish.

Speaking to the BBC she warned, “It will it will be absolutely catastrophic.”

Nicholls said, “It is imperative that the employer contribution of the Job Support Scheme is removed from all hospitality businesses, as all are facing restrictions.

“From 1 November it is really uncertain whether our businesses will be able to access the new Job Support Scheme but in any case that requires businesses to be able to pay 55% of wages and hospitality just can’t afford to do that with no revenues.

“So, you’ve got a real squeezed middle in Tier 2 with next to no help, maximum restrictions and no alternative but job losses.”

She wrote to the Mayor of London Sadiq Khan to warn him that the elevating risk level across the capital “will be incredibly damaging without additional financial support.”

Nicholls said that businesses with the sector must be exempt from paying 55% of an employee’s wage under the new Job Support Scheme (JSS) which is a replacement to the furlough scheme.

Under the new scheme an employee will have to work at least a third of their normal working hours, and the government will contribute 22%.

Businesses within the hospitality industry who are placed into tier 3 like Liverpool, the employer will not have to pay towards the salary and the government will pay 67% towards the wages.

Nicholls added, “It is imperative that the employer contribution of the Job Support Scheme is removed from all hospitality businesses, as all are facing restrictions.

“From 1 November it is really uncertain whether our businesses will be able to access the new Job Support Scheme but in any case that requires businesses to be able to pay 55% of wages and hospitality just can’t afford to do that with no revenues.

“So, you’ve got a real squeezed middle in Tier 2 with next to no help, maximum restrictions and no alternative but job losses.”

Michael Kill, CEO of the NTIA added, “The announcement of further restrictions in London & Essex, bringing in Tier 2 restrictions will have a devastating impact on the sector.

“The changing environments presented by Government and the inconsistent direction of travel is preventing many from planning for the future, giving business owners no confidence to invest.

“The restrictions on tourism and drop in footfall across the capital is being exacerbated by the operational challenges and restrictions that are making businesses unviable.

“The rules that have been implemented, including the 10pm curfew, and the manner with which this is being regulated is creating a fear factor amongst operators, with many confused over the guidelines and accountability.

“Our sector is being systematically closed, and needs absolute clarity on the government’s recent measures and a robust support package to survive the winter.”

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