(Sharecast News) - The UK's pub industry warned it faced an existential crisis and could be lost in "days" after the government advised people to avoid bars and restaurants to combat the spread of coronavirus.
Prime Minister Boris Johnson faced a serious backlash from industry over the advice, which was issued on Monday and appeared to have been drawn up at short notice. Finance Minister Rishi Sunak was reportedly set to announce a financial rescue package later on Tuesday.
Industry body the British Beer and Pub Association (BBPA) said in a letter to Johnson that "thousands of pubs and hundreds of thousands of jobs" would be lost in the very short term "unless a proactive package creating cash and liquidity is provided immediately to the industry".
BBPA chief executive Emma McClarkin said the guidance "did not provide any form of advice or clarity on how the industry should respond".
"This is unhelpful in the extreme. At the same time the absence of any financial commitment to stand behind all businesses including small community pubs is creating panic with people being fearful that their livelihoods will be destroyed," she wrote.
"Forced pub closures without a meaningful support package will have a catastrophic financial and social impact."
McClarkin urged the government to cancel all business rates payments for six months, as well as all tax payments including PAYE, VAT and corporation tax for pubs and hospitality businesses.
She also called for the cancellation of beer duty payments for six months, and the postponement of the planned national minimum and living wage increases due in April.
"I cannot emphasise strongly enough how critical it is that action is taken now. Failure to do so will destroy the industry," she said.
11 Aug 2014 08:13
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