Hugh Osmond, founder of Punch Taverns, has lost a legal battle to open indoor hospitality sooner than May 17th.
The High Court ruled in favour of the Government, refusing to open indoor hospitality early. Hugh Osmond, along with Greater Manchester’s night-time economy advisor, Sacha Lord are disappointed at the outcome. They argue that their is no scientific reason or justification to keep indoor dining closed when outdoor dining was allowed to open April 12th.
Mr Lord said they will hold the Government accountable, demanding evidence for their decisions rather than “those based on whim or bias”. Sacha did say that the high profile battle did create one positive by bringing a light to the struggle of the hospitality sector. He also believes it will help people see “the unfair and unequal guidance” set by the government.
The Government countered that it decision is based on “data not dates”. Rushing the results will heighten the chance of a further lockdown. The industry has received numerous grants from the Government, including the Restart Grant Scheme, Furlough and cuts to the VAT.
Hospitality – a sector in trouble!
The hospitality industry is one of the worst hit in Covid. Mr Osmond, the former director of Pizza Express, estimates a £200 million loss for each day the industry is forced to remain closed. Approximately three million employees work in the industry, not including the businesses, suppliers, contractors and landlords forced into bankruptcy.
The Trade Body UK Hospitality has warned that 40% of the industry are negotiating unpaid rents – with an estimate of two billion in rent still owed by businesses. Of the £2bn, up to 30% are still trying to settle their existing debts from the 2020 lockdown. Currently a ban exists that prevents landlords to evict commercial tenants, but that is due to end.
The UK Government is arguing that the lockdown restrictions are based on scientific evidence. The 22 scientific papers, which the Government used to guide lockdown restrictions, have been available online since February.
The risk of transmission has been proved to be lower when outside, which is why businesses with outside settings have been allowed to open. Indoor hospitality will reopen on May 17th.
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