Employers slam London Tier 3 shutdown as 300k job losses hit hospitality

The scale of the hit to London’s pub and leisure trade was laid bare today with unemployment figures which reveal a third of all job losses are in hospitality.

Economists warned that even worse is to come, as industry leaders blasted a “shocking and irresponsible” sudden move into Tier 3 that could devastate businesses already on their knees.

Unemployment figures out today showed 819,000 job losses since February, 297,000 of which were in the hospitality industry.

There were 370,000 job losses between August and October alone, more than at any point on record as the pandemic hit the labour market.

Warren Kenny, GMB acting General Secretary, said: “These job losses are catastrophic for families across the UK. Help from the Government throughout this crisis has often been haphazard — with constant U-turns, delays in policy changes and a lack of leadership. Government failings have been devastating for hospitality, aviation and public services.”

Nye Cominetti, senior economist at the Resolution Foundation, said: “The extension of jobs support schemes will have protected millions of jobs and kept a lid on rising unemployment over the winter. But with vacancies still a third down on pre-crisis, and significant social distancing restrictions likely to be required well into 2021, unemployment will continue to rise in the new year.”

The unemployment rate rose to 4.9% in the three months to October, with 1.7 million jobless. 

Hospitality has been particularly badly hit. The industry will suffer even more when London enters Tier 3 tomorrow.

City economists say London pubs will lose £50 million in sales over two Christmas weeks that would otherwise have been the most profitable part of the year. 

The figures came as bosses called for a “minister for hospitality” to represent the sector at the top table.

Helen Brocklebank, chief executive of British luxury trade body Walpole, said Tier 3 will “put so many jobs and businesses at risk” and “is the wrong decision at the wrong time”.

Darren Henaghan, managing director of Borough Market, said: “If you were to formulate a strategy deliberately designed to destroy small, independent restaurants, cafes and pubs, it would look not unlike the past six months”.

Ian Wright, chief executive of the Food and Drink Federation, said the lack of notice was “shocking and irresponsible” and “will impact all businesses”.

He warned that the hit to business as the end of the Brexit transition period looms “will certainly exacerbate the disruption to the capital’s food supply”.

Greene King boss Nick Mackenzie said the move “will further cripple the pub sector, which is already on its knees”.