London Daily

Focus on the big picture.
Friday, Jun 20, 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
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×