In its regular and ongoing discussions with the UK Government, and in response to the crisis in the hospitality sector as result of the Omicron variant, the Institute of Directors is calling on Government to stop the phasing out of remaining Covid-related support schemes for businesses affected.
Kitty Ussher, Chief Economist at the Institute of Directors, said:
“It made sense to unwind pandemic-related business support schemes when it looked like business conditions were beginning to return to some semblance of normality. However, following the Omicron variant and the subsequent drop in consumer demand in some parts of the economy, this is patently no longer the case. For restaurants, travel companies and venues, this couldn’t come at a worse time.
“We are therefore calling on Government to stop the unwinding of remaining support schemes, such as the VAT reduction for hospitality and business rates support. Hospitality venues, facing a sudden drop in bookings over Christmas, need the reassurance that support measures will last for longer into 2022 to compensate for the loss of income that they are facing now.”