Businesses warn Executive: You can’t do lockdown on the cheap

Another lockdown or a move to ‘significant’ restrictions to combat omicron in the new year won’t be possible without furlough cash, business groups have warned.
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This comes after ministers in the Northern Ireland Executive were told ‘significant intervention’ may be required straight after Christmas to keep coronavirus inpatient numbers below 1,000 as fears surrounding the spread of the omicron variant grow.

A Department of Health modelling paper said that would be the scenario facing the Executive if omicron turns out to be “close” to the severity of the delta variant.

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The peak of Covid-19 hospital inpatient numbers during the pandemic in Northern Ireland was 1,055 in January this year.

Indoor hospitality continues to face challengesIndoor hospitality continues to face challenges
Indoor hospitality continues to face challenges

The paper, seen by the PA news agency, was circulated to ministers ahead of yesterday’s meeting of the Executive.

Following the meeting, a joint statement from Stormont’s Executive Office confirmed “scenario planning” about the next steps is already under way.

But Retail NI chief executive Glyn Roberts has warned ministers that “you can’t do a lockdown on the cheap” as he pointed out government financial support for businesses ordered to close or to operate under severe restrictions is no longer in place.

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And his comments come as hospitality firms across the UK – including Northern Ireland – ramp up calls for support from the UK government as health warnings wreak havoc on hard-hit pubs and restaurants.

Grafiti on the Newtownards Road in BelfastGrafiti on the Newtownards Road in Belfast
Grafiti on the Newtownards Road in Belfast

UK Hospitality boss Kate Nicholls has made a plea for business rates relief and VAT discounts to be extended, warning that the sector has been knocked harder than expected by the new restrictions.

She said hospitality sales have already plunged by more than a third over the last 10 days with £2 billion of trade already lost in December.

It comes as the CBI also urged the government to provide support “in lockstep with future restrictions”.

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The rapid rise in Covid-19 cases as the omicron variant sweeps the UK has led to a surge in booking cancellations.

Hospitality Ulster chief executive Colin Neill, speaking to the News Letter, said: “The hospitality industry is taking one for the team already. We have taken the most restrictions for the longest time and suffered the most.

“That said, we’re not oblivious to the challenges of the world we live in and we would appeal to the Executive to work with us.”

He continued: “I think it’s better if we can keep the industry open and keep people employed, if we can, but we can’t do that if we keep losing money.

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“We need financial support to help us break even and stay open, because if it comes to total closure it really needs significant financial support.

“Closure now is worse than closure before. We’re now having to pay back the debt. The rental protection ends shortly. The insolvency protection ends. So it would be better if we could keep premises open and keep people employed – not to make money, but just to pay the bills, break even, pay the staff.

“And whatever is happening, we need to pay the staff.”

He added: “If we lose the industry I’m not sure we can get it back, and it is vital to our tourism offering, our wider economy.”

Mr Roberts, meanwhile, also appealed to the Executive to work with businesses.

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“I think the first thing is the Executive need to do things with us rather than to us, and they haven’t had a good track record on that in the past,” he said.

“We look at how disaffected our hospitality sector is, and how they have been treated in the past.”

On the prospect of another lockdown or tightening of restrictions, he said: “Obviously, there is no furlough, there are no more grants, and from what we are aware of there is no more Treasury funding either. So that, obviously, is a cause for concern amongst the business community.

“We need to temper whatever briefings are going on with the proviso that the money, at this stage, is not there either for significant restrictions or some form of lockdown.

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“You cannot do a lockdown on the cheap. You cannot do a lockdown without the grants, the furlough, at the very least.”

Mr Roberts also appealed to the public to follow the public health advice, and ensure they are vaccinated, in order to try and prevent the need for further restrictions.