Chancellor Rishi Sunak in California as hospitality businesses plead for Covid help

Labour has called for Rishi Sunak to “get himself on a flight back and get a grip on the situation” after it was revealed the Chancellor is currently in California.
Rishi Sunak is reported to currently be in California.Rishi Sunak is reported to currently be in California.
Rishi Sunak is reported to currently be in California.

The Daily Mirror reported Mr Sunak has been in the US meeting industry leaders from the tech and investment sectors, with a spokesperson for the Chancellor confirming details of the trip.

"It is a work trip where he is conducting Government business and has a packed schedule of meetings and round tables," the spokesperson said.

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But the situation comes as hospitality businesses call for Government support as Omicron cases wipe out bookings during what is traditionally the busiest time of the year for many restaurants and pubs.

Shadow health secretary Wes Streeting said the Chancellor should “get himself on a flight back and get a grip on the situation”.

Mr Streeting told Times Radio: “We understand the Chancellor is currently out of the country in California. So perhaps he might want to get himself on a flight back and get a grip on the situation because businesses need certainty and confidence now.”

Yorkshire MP Mr Sunak is said to be in contact with his team "all the time" and is due to be calling some British hospitality businesses today to hear their concerns.

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UKHospitality boss Kate Nicholls has made a plea for business rates relief and VAT discounts to be extended, warning that the sector has been knocked harder than expected by the new restrictions.

She said hospitality sales have already plunged by more than a third over the last 10 days with £2 billion of trade already lost in December.

It comes as the CBI also urged the Government to provide support “in lockstep with future restrictions”.

The rapid rise in Covid-19 cases as the Omicron variant sweeps the country has led to a surge in booking cancellations.

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Consumer confidence has been knocked by new restrictions and increasing health warnings.

England’s chief medical officer Professor Chris Whitty has advised Britons to consider cutting back socialising around Christmas, while Prime Minister Boris Johnson said people should “think carefully” before going out to celebrate.

Ms Nicholls said: “It is quite clear that the impact of the current guidance and restrictions has been more hard hitting on an already beleaguered hospitality sector than expected.”

She added: “It is imperative that local authorities release the discretionary grants and rate relief they have to affected businesses immediately and VAT and rate relief support is extended and not turned off prematurely.”

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Firms across the sector are asking for an extension of the discounted 12.5% VAT, which is due to revert back to the original 20% rate in March next year, with UKHospitality also pushing for a deferral of business rates.

She said the group was working with the Treasury and across government to help ensure support is maintained for the sector.

Earlier this week, the International Monetary Fund said Chancellor Rishi Sunak should be “ready to deploy” a mini form of furlough support in the event of widespread closures to help sectors suffering the most, such as hospitality.

Rain Newton-Smith, CBI chief economist, added: “Further support for struggling firms will be needed if fresh government public health measures prevent firms trading their way to recovery.

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“Cash is king, so helping affected firms with cashflow, by ensuring unspent local authority grants are distributed to firms, giving firms more headroom to manage their coronavirus debt repayments and considering measures to reduce the fixed costs of businesses where demand is severely affected should be on the table.”

Michelin-starred chef Tom Kerridge has highlighted the suffering in the sector when he revealed one of his restaurants has seen more than 650 cancellations in the past six days due to Omicron fears.

Dominic Paul, chief executive of takeaway chain Domino’s Pizza, said parts of the hospitality industry “are going to have a really tough few months”.

He added: “The Government showed a real willingness to support the industry before and I think they probably will again.”

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