Fast food bosses urge Rishi Sunak to put in place new support schemes
The bosses of some of the UK’s largest restaurants have tonight written to chancellor Rishi Sunak urging him to provide more support for the sector after new coronavirus measures were put in place yesterday.
In the letter, the chief executives of fast food giants such as Itsu, KFC and Pizza Hut, along with takeaway service Deliveroo, said that the new restrictions could have a “catastrophic impact” on businesses.
Under the new rules all hospitality venues will have to close by 10pm from tomorrow, and will be limited to table service only.
“Given the detrimental impact that the requirement to close at 10pm for dine-in and collections services will have on many restaurants and their staff we believe it is important that the government considers further financial measures to support the sector over the coming months”, they wrote.
In order to protect the sector, the letter called for a number of new support schemes to help see it through the coming winter.
First, they said that the government should consider a “targeted support scheme” for hospitality staff, as well as asking for clarity as to whether the current furlough scheme would be extended.
At the moment, the job retention scheme is due to wrap up at the end of October, but Sunak is due to make an announcement on a new support scheme for businesses tomorrow.
However, both he and Boris Johnson have poured doubt on the possibility of the furlough scheme being extended.
Second, they asked for the current VAT reduction on restaurant food to be extended for another six months beyond 12 January next year.
“We believe that extending the VAT reduction for at least a further 6 months would make restaurants better placed to attract price-sensitive customers and increase orders, protect jobs, and meet rent obligations”, they said.
In addition, the delivery fees paid by customers should be covered under the VAT reduction, they said.
Next, they said the government should also extend business rates relief “for a longer period”, warning that “the prospects of restaurants being able to return to paying full business rates at the end of this tax year are slim”.
“This is likely to be particularly important in city-centre locations, where encouraging people to continue to work from home means that restaurants, pubs and cafes with high rateable values still experience significantly lower footfall.”
Finally, they said that the government should take steps to make it clear to the public that it was safe for them to eat and drink in restaurants.
“It is important that the Government reiterates the scientific messages around food safety and that there are no instances of COVID transmission through food.
“While we must all be vigilant, wash our hands and socially distance, it is important that the public are not left under the misapprehension that restaurant food carries a COVID-19 risk”, they wrote.
“Given the further restrictions now being implemented, it is vital that we do all we can to not undermine the recovery that has already begun”, the letter finished.
It was also signed by the bosses and owners of Zia Lucia, the Athenian, Cocotte and Wingstop.
The letter came after Sunak this afternoon cancelled the autumn budget in order to focus on what he dubbed his “winter economy plan”.