Many hospitality workers have suffered a substantial drop in income because tronc payments are not covered by the furlough scheme, according to an analysis of workers’ incomes in the previous year.
Industry associations have urged the Chancellor to maintain the furlough scheme at the current 80% payment level until October and increase its flexibility for the trade.
Chancellor of the Exchequer Rishi Sunak is set to announce further details about contributions from employers for the furlough scheme from the beginning of August.
A lack of Government guidance on its expectations for the pub trade once lockdown is lifted has left the sector in limbo over whether or not they will reopen on the tentative date of 4 July.
Cash-strapped pub operators will be unable to pay towards the Government’s Coronavirus Job Retention Scheme (CJRS), also known as furlough, when their businesses are permitted to reopen.
A new insolvency bill, which has been introduced in parliament, will provide operators with time to restructure their business, one trade body has said.
Government financial support for the pub trade is not expected to drop off a cliff once lockdown measures are lifted and businesses reopen, The Morning Advertiser (MA) understands.
Both the Campaign for Real Ale (CAMRA) and the Society of Independent Brewers (SIBA) have argued that Scotland’s recently rubber-stamped deposit return scheme (DRS) could saddle drinks makers across the UK with extra costs.
Support packages for the hospitality industry must continue and evolve to the end of 2020 and into the beginning of next year, one trade leader has urged.
Most operators, asked in a snapshot poll of hospitality leaders, have said it will take up to two years to reach pre-coronavirus lockdown profit levels, while 88% of those asked have not agreed favourable rent terms with landlords over the coming months.
The chief executive of one of the UK’s largest trade bodies representing the pub sector has reiterated the Government’s warning that employers should not abuse the furlough system.
The Covid-19 pandemic has thrown the world into a health and economic downward spiral but the UK Government has, and continues, to offer lifelines to the hospitality sector. Here is what’s available to pubs.
