Demand for urgent hospitality summit to rescue pubs and restaurants facing collapse in Newcastle and nationally backed by Newcastle Liberal Democrats

Ahead of new Covid restrictions coming into effect, Liberal Democrats in Newcastle have backed their MPs' call for an emergency hospitality summit to save businesses on the brink.

With some restaurants already losing half their Christmas bookings, and footfall levels in many towns and cities due to drop off, there is an urgent need for action.

Businesses are increasingly worried about the coming months, with today's GDP figure rising by just 0.1% and tax rises to hit smaller businesses hard in the new year.

Liberal Democrat Health Spokesperson Daisy Cooper MP and the party's Business Spokesperson Sarah Olney MP, have written to the Business Minister demanding action.

Cllr Robin Ashby, who speaks for NewcastleLiberal Democrats on business matters said: "Boris' botched and rushed announcement of more Covid restrictions without offering any new support for the city's nightime economy and hospitality sector is a scandal.

"Our important pubs, restaurant and entertainment venues cannot withstand another grim Christmas. Independent businesses have worked hard and played by the rules throughout this pandemic, even when it has cost them dearly. In return, the government is pulling the rug from underneath their recovery from covid.

"There is no time to waste. We need an emergency package to save our district and city centres. The Government needs to hear directly from hospitality businesses what is needed for them to stay afloat, and then act upon it."

The full letter from Liberal Democrats MPs reads:
To: Paul Scully (Minister responsible for pubs and Covid business support)

Dear Minister

Urgent Hospitality Summit

We are writing to you in light of reports that pubs and hospitality businesses are seeing unprecedented rates of booking cancellations for the festive period. As the Minister responsible for hospitality and Covid business support, you will be aware that this sector relies heavily on the peak Christmas season to offset the impact of the slower months in the new year.

The festive season in 2020 was a write off, with businesses losing their peak trading period completely as a result of public health regulations necessary to protect us all from the Covid pandemic. But at that time, there were at least business grant schemes, and additional funding schemes in place that local authorities could allocate to this struggling sector.

Hospitality businesses are telling us that confidence from their customers has plummeted with news of the potential impact of Omicron, and cancellations of 50% of bookings were not uncommon even before the announcement today of the move to Plan B restrictions. With the addition of work from home measures reducing high street footfall, and further discouraging workplace gatherings in advance of Christmas, the sector has been dealt another hammer blow with no prospect of support in the pipeline.

Hospitality venues who are to be required to administer the Covid Passport system will incur extra staffing costs in many cases. The crashing of the NHS app within hours of the Prime Minister's announcement will do nothing to assure businesses that this illiberal scheme can operate smoothly.

Supply chain disruptions mean in many they've already paid to secure the stock for the season. Much of this can't be stored for the future, and even the small proportion that can will cause immediate cashflow disruption in already struggling businesses.

Hospitality workers will also see hours cut as demand drops. Many have had to isolate due to Covid infection, or close contact with suspected Omicron cases. In the absence of government support, in common with retail, these workers can be left in dire financial straits. They need help today.

We need an urgent hospitality summit to bring together representatives from hospitality, leisure and the supply chains with hospitality workers and government, to put in place an emergency plan to save our pubs, restaurants, hotels and nightlife from collapse.

We look forward to hearing from you as soon as possible, with your proposals to convene such a summit.

Daisy Cooper MP, Liberal Democrat Deputy Leader and Health Spokesperson
Sarah Olney MP, Liberal Democrat Business Spokesperson