London Daily

Focus on the big picture.
Wednesday, Oct 22, 2025

COVID-19: Businesses demand taxpayer aid as Plan B in England puts 'fragile' recovery at risk

COVID-19: Businesses demand taxpayer aid as Plan B in England puts 'fragile' recovery at risk

The prime minister was urged not to throw nightclubs and bars "under a bus" by imposing the new restrictions.

Confirmation of Plan B COVID-19 restrictions for England has stirred dismay in the leisure, retail and travel sectors - with business leaders warning taxpayer support will be necessary to help firms navigate the impact.

The hospitality sector warned of "catastrophic" consequences without renewed aid from the chancellor, while the CBI and British Chambers of Commerce also raised the stakes on the issue.

Baroness Ruby McGregor-Smith, the BCC's president, expressed exasperation when she said: "We have been calling on the UK government for several months to set out what contingency plans for business would look like if further restrictions were needed this winter.

"Yet again, firms are now being asked to make changes at the very last minute. Restrictions will also impact on consumer behaviour with knock-on effects which could risk the fragile recovery, order books and revenues."

Business groups fear that firms will suffer from depressed demand, damaging fragile recoveries further


The Night Time Industries Association (NTIA) said the Plan B restrictions, including vaccine passports for large events and work from home guidance, would have a "devastating impact" on demand.

Chief executive Michael Kill also questioned the "timing and rationale" for the announcement as the prime minister faces a furore over a Downing Street party last Christmas.

"Nightclubs and bars must not be thrown under the bus for the prime minister to save his own skin," Mr Kill said.

Under the restrictions, face masks must be worn in most indoor venues, including theatres and cinemas, from Friday - with exceptions including when eating, drinking, exercising or singing.

Mandatory vaccine passports are being brought back in a week's time for larger events and nightclubs, where people must prove they are at least double-jabbed.

Other business leaders said retailers would suffer in particular under the new advice to work from home from the start of next week - hitting them at their most important time of year - as town and city centres risked a return to "ghost town" conditions.

There was particular relief that there would be no return to the so-called "pingdemic" when close contacts of COVID suffers were told to isolate for 10 days - sometimes decimating workforces and key services including food delivery.

The government is prioritising daily testing for close contacts instead.

The pub sector fears the restrictions will knock bookings for office Christmas parties


Bars and restaurants will be exempt from the new face mask rules.

But Emma McClarkin, chief executive of the British Beer & Pub Association, said of the reprieve: "Make no mistake, this (Plan B) is a huge blow for our sector as it further undermines consumer confidence and is devastating for pubs based near offices and in town centres."

Kate Nicholls, who heads UKHospitality, demanded "full business rates relief, grants, rent protection and extended VAT reductions" for her membership.

She added: "Anything less would prove catastrophic".

How financial markets have reacted


Sterling dropped below $1.32 against the US dollar, to its lowest level since December last year, when reports of tighter curbs first emerged on Thursday morning.

The pound's weakening reflects the likelihood that further restrictions will hold back the wider economy, dampening already diminishing prospects of a pre-Christmas interest rate hike.

However, sterling was trading flat versus the greenback after the Downing Street news conference - suggesting some relief that the measures did not amount to anything close to a lockdown.

UK stock markets, which closed before the PM's announcement, had earlier seen travel and leisure shares come under pressure - disrupting their recovery from an initial Omicron shock sell-off.

The pound hit a one-year low versus the dollar earlier in the day amid jitters over the prospect of new restrictions


British Airways owner International Airlines Group - already badly hit after the government imposed travel restrictions in response to Omicron - was among the FTSE 100's biggest fallers earlier in the day as it slid more than 3%.

The shares ended the day in positive territory.

Aero engine maker Rolls-Royce lost 2% of its value while easyJet, which had dipped by nearly 4%, was just 0.7% down by the market close.

Shares in Cineworld fell.


The FTSE 100 ended the day flat.

In the wider leisure sector, hopes of a pick-up for cinemas, restaurants and pubs were punctured by the prospect of Plan B.

Cineworld's shares fell 5% but later clawed back half that loss.

Newsletter

Related Articles

0:00
0:00
Close
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
×