Omicron crisis: Black Sheep Brewery boss tells Rishi Sunak of 85 per cent booking cancellation rate

Mr Sunak has cut short a widely-criticised work trip to California and was returning overnight to the UK earlier than planned to continue discussions with business leaders following virtual calls from the US West Coast yesterday.

The Chancellor and Richmond MP said he recognised “this is a concerning time for businesses” as another 88,376 Covid cases were confirmed in the UK yesterday - a record high for a second consecutive day.

“This Government has done whatever it takes at every stage to support lives and livelihoods throughout this pandemic - and of course we will continue to do so,” he said.

Among the business leaders to speak to Mr Sunak yesterday was Charlene Lyons, chief executive of the North Yorkshire-based Black Sheep Brewery, which employs around 120 people. The brewery supplies its products to supermarkets and pubs, as well as operating its own bars and a visitor centre.

Ms Lyons said December business is down by about a third across all channels during what is normally its busiest month of the year, while 85 per cent of bookings at its two food-led bars in Masham and Chapel Allerton have been cancelled in the past week.

“We had 112 booked in for today and we’ve now got 17,” she said. “People are being cautious because they want to preserve and protect Christmas Day and I completely get that. But it is unfortunate that we are in the position where we are being horrendously impacted.”

She said she had a “really good and honest conversation” with the Chancellor about the current challenges.

“If things don’t improve then the Government will have no choice but to implement some measures that will help businesses like ours,” she said.

Ms Lyons said criticism of the Chancellor for being in America on a pre-planned work trip was unfair given how fast-moving the Omicron situation has been.

Among the other organisations to speak to Mr Sunak and Treasury officials yesterday and call for further support were the Federation of Small Businesses.

FSB national chair Mike Cherry said: “Decisions will need to be made shortly, to protect businesses and the economy.

“We stressed to the Government this afternoon that help is needed now for the small firms that make up 99 per cent of our business community and which are facing the disruption of a tidal wave of Omicron right during the crucial festive trading season.

“Business rates relief for the hardest-hit should be extended to 100 per cent, and the £1.5bn business rates hardship fund promised in March for the supply chain must be accelerated.

“Additionally, we’re urging policymakers to relaunch the COVID Statutory Sick Pay rebate for small employers. As many as one million people could be unwell or self-isolating by the new year, so we need help to make sure everyone takes the right action to protect public health.”

UKHospitality boss Kate Nicholls and pub chiefs have 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.

Ms Nicholls said hospitality sales have already plunged by more than a third over the past 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”.

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 on socialising around Christmas, while Prime Minister Boris Johnson said people should “think carefully” before going out to celebrate.

Ms Nicholls said: “Christmas trade is always crucial for the hospitality industry, making up as much as a quarter of the year’s profit for many businesses.

“Last year, Christmas was cancelled and so much rested on this December period for businesses already staggering under a burden of debt incurred from the pandemic and facing rising costs across the board.

“If operators are unable to trade profitably over the next month, many will simply not survive – and those that do make it through face a return to 20% VAT in April.

“The Government must step in now and provide measures that support the businesses and jobs in the sector – by committing to keeping VAT at 12.5%, suspending business rates payments for the first quarter of 2022 and reinstating recovery grants.”

Trip came after PM's 'tidal wave' warning

Labour have questioned why Rishi Sunak pressed ahead with California trip two days after Boris Johnson had warned the nation it was facing a “tidal wave” of Omicron.

Mr Sunak flew to the US on Tuesday for what was originally planned to be a four-day visit to meet tech and investment bosses and had been due to fly back tomorrow.

Shadow Treasury Chief Secretary Pat McFadden said: “Why did he decide to proceed with a trip to California on Tuesday when it was already clear that UK businesses were struggling to cope with what the Prime Minister himself has called a ‘tidal wave of Omicron’?”

Read more:

Yorkshire businesses hit by wave of cancellations in wake of Omicron

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