Rishi Sunak “missing in action” as hospitality venues face closure

Jonathan Reynolds has accused Rishi Sunak of being “missing in action” while thousands of bars, restaurants and other hospitality venues face closure in the face of surging Covid cases and a significant drop-off in the usual festive trade.

Commenting on Office for National Statistics survey data, which showed one in five businesses reporting that they are at risk of going under, Reynolds described Sunak’s silence as an “insult to the British businesses and workers who have struggled to get to this point”.

“They are now facing closure by stealth from a government without the authority to take the public health measures required and back it up with economic support,” the Shadow Business Secretary said.

“Firms are clear in their message to government, they need help now not just warm words. Labour backs British business and workers with our plans to fix sick pay, ease the burden of debt repayments and cut business rates for small businesses.”

According to the ONS figures for the month before Omicron was recorded in the UK, one in three hospitality businesses recorded lower than usual sales for the festive period and almost one in ten businesses in the culture sector are at moderate or severe risk of insolvency.

Despite Christmas parties being cancelled across the country, and the public being told at the Wednesday Covid press conference that they should only prioritise social activities that “really matter”, no further support has been announced.

Treasury minister John Glen told parliament on Thursday that he recognised the “additional pressures” that have accompanied the spread of the Omicron variant across the country, but also claimed that the advice on socialising over Christmas is “clear”.

Chief medical officer Chris Whitty advised the public to deprioritise most social contact on Wednesday. Glen’s claim that guidance is “clear” was criticised by MPs on both sides of the Commons. Labour called for a package of business support to be announced by the end of Thursday in response.

Sunak, who was in California, flew back to the UK on Thursday night after business leaders demanded he put together such a package to allow them to survive the significant fall in trade after the “frightening” messaging on socialising.