London Daily

Focus on the big picture.
Tuesday, Oct 07, 2025

UK's Sunak cuts short U.S. trip to discuss new COVID-19 aid

UK's Sunak cuts short U.S. trip to discuss new COVID-19 aid

British finance minister Rishi Sunak cut short an official trip to the United States on Thursday to consider help for COVID-hit hospitality businesses but said firms were already receiving support through tax reliefs.

Britain has reported record numbers of new COVID-19 infections for two days running, and on Wednesday England's chief medical officer warned people not to mix with others unless they have to in the run-up to Christmas.

"I appreciate that it is a difficult time for the hospitality industry," Sunak told reporters before returning to Britain.

"The good news, I would say, is that there is existing support measures in place to help the industry," he added, citing tax reliefs and money provided to local authorities which had yet to be disbursed.

Sunak said he had held online talks with representatives of the hospitality sector earlier in the day and would continue to work with them after flying back to Britain late on Thursday. He had previously been due to return on Saturday.

His statement was unlikely to ease the concerns of the hospitality industry, whose trade body said that business had been badly hit already during the Christmas period, which some firms heavily rely on to see them through quieter months.

PRESSURE


A closely watched survey of purchasing managers published on Thursday showed a hit to hospitality and travel companies this month, sending overall private sector growth to a 10-month low.

Sunak and a deputy spoke on Thursday with trade groups including UK Hospitality and the Confederation of British Industry, as well as hotel and restaurant operator Whitbread (WTB.L) and restaurant chains Nando's and Prezzo.

"We stressed to the government this afternoon that help is needed now for the small firms ... which are facing the disruption of a tidal wave of Omicron right during the crucial festive trading season," said Mike Cherry, chair of the Federation of Small Businesses.

Britain has cut back most of the support it offered to businesses during the pandemic. The job-protecting furlough scheme ended on Sept. 30, while the rate of value-added tax (VAT) on hospitality services increased to 12.5% from 5%, and is due to rise again to its pre-pandemic level of 20% from April.

Business groups have called for a reversal of the VAT rise, property tax exemptions and rebates on employees' sick pay.

($1 = 0.7534 pounds)

Newsletter

Related Articles

0:00
0:00
Close
Three Scientists Awarded Nobel Prize in Medicine for Discovery of Immune Self-Tolerance Mechanism
OpenAI and AMD Forge Landmark AI-Chip Alliance with Equity Option
Munich Airport Reopens After Second Drone Shutdown
France Names New Government Amid Political Crisis
Trump Stands Firm in Shutdown Showdown and Declares War on Drug Cartels — Turning Crisis into Opportunity
Surge of U.S. Billionaires Transforms London’s Peninsula Apartments into Ultra-Luxury Stronghold
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Jeff Bezos Calls AI Surge a ‘Good’ Bubble, Urges Focus on Lasting Innovation
Japan’s Ruling Party Chooses Sanae Takaichi, Clearing Path to First Female Prime Minister
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Taylor Swift’s ‘Showgirl’ Launch Extends Billion-Dollar Empire
Trump Administration Launches “TrumpRx” Plan to Enable Direct Drug Sales at Deep Discounts
Trump Announces Intention to Impose 100 Percent Tariff on Foreign-Made Films
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Singapore and Hong Kong Vie to Dominate Asia’s Rising Gold Trade
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Manhattan Sees Surge in Office-to-Housing Conversions, Highest Since 2008
Switzerland and U.S. Issue Joint Assurance Against Currency Manipulation
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Thomas Jacob Sanford Named as Suspect in Deadly Michigan Church Shooting and Arson
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
New York Man Arrested After On-Air Confession to 2017 Parents’ Murders
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
FBI Removes Agents Who Kneeled at 2020 Protest, Citing Breach of Professional Conduct
Trump Alleges ‘Triple Sabotage’ at United Nations After Escalator and Teleprompter Failures
Shock in France: 5 Years in Prison for Former President Nicolas Sarkozy
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
BNP Paribas Abandons Ban on 'Controversial Weapons' Financing Amid Europe’s Defence Push
Typhoon Ragasa Leaves Trail of Destruction Across East Asia Before Making Landfall in China
The Personality Rights Challenge in India’s AI Era
Big Banks Rebuild in Hong Kong as Deal Volume Surges
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Arnault Denounces Proposed Wealth Tax as Threat to French Economy
Study Finds No Safe Level of Alcohol for Dementia Risk
Denmark Investigates Drone Incursion, Does Not Rule Out Russian Involvement
Lilly CEO Warns UK Is ‘Worst Country in Europe’ for Drug Prices, Pulls Back Investment
Nigel Farage Emerges as Central Force in British Politics with Reform UK Surge
×