Grave fears for hospitality firms over Christmas due to new Covid advice

Millions of Britons are now expected to axe their festive plans – including Christmas parties – so they can see family on Christmas Day after the Government urged people only to socialise if necessary – and not in large groups or with strangers.

It has led to hospitality firms in the region to ramp up calls for support from the Government as the spread of Omicron and health warnings wreak havoc on hard-hit pubs and restaurants.

Charlie Farman, marketing assistant at Cleobury Mortimer-based Hobsons Brewery, said: “Pubs and restaurants are expected to see an up to 40 per cent cut in Christmas takings due to cancellations and less people going out.

"The Government’s socialising warnings are causing the public to panic and cancel bookings, often at short notice. This is leaving pubs and restaurants with empty seats and no time to replace the booking.

"This is something the Government needs to answer for, not the public. Additional support such as business rates relief or a breather on previous loan repayments needs to be considered to support hospitality during what should be a peak time of year.

“We are seeing more cautious ordering from pubs this Christmas, over fears that restrictions will cut beer sales. It is frustrating for everyone to feel unsure on where we stand at the moment, during a crucial time of year for us as a brewery and our on-trade customers we supply.”

Julia Malia, licensee of The Wickets pub on Holyhead Road, Wellington, said: "We had picked ourselves up from the lockdowns, we were looking busy, and now we have had endless cancellations. People are nervous and many of our customers are vulnerable and they have mixed feelings about Christmas gatherings."

Bryn Masterman, manager at The Old Castle in Bridgnorth, said he was pleased to say that so far he hasn't seen much of a drop in sales.

He said: "We haven't had many cancellations. It all depends on what happens in the next couple of weeks I suppose.

"People aren't required to wear masks here but some of them are doing it anyway. If Covid passes came in, I wouldn't like to do it but if we have to then we will."

Prior to the emergence of Omicron and Plan B restrictions, figures show the hospitality industry was on track to reach 95 per cent of pre-pandemic trade levels but consumer confidence has since plummeted.

UKHospitality chief executive, Kate Nicholls, said: “Christmas trade is always crucial for the hospitality industry, making up as much as a quarter of the year’s profit for many businesses. Last year Christmas was cancelled and so much rested on this December period for businesses already staggering under a burden of debt incurred from the pandemic and facing rising costs across the board.

“If operators are unable to trade profitably over the next month, many will simply not survive – and those that do make it through face a return to 20 per cent VAT in April. The Government must step in now and provide measures that support the businesses and jobs in the sector – by committing to keeping VAT at 12.5 per cent, suspending business rates payments for the first quarter of 2022 and reinstating recovery grants.”