Save Christmas: West End bosses in spending plea to Londoners

West End bosses have appealed to Londoners to make the most of shops, pubs, theatres and restaurants in the crucial run up to Christmas as new data reveals the scale of the threat posed by working from home and the lack of tourists.

With only 50 days to go until Christmas they are particularly worried about the slower than hoped for recovery in high-spending visitors from America, the Far East and Middle East.

Early forecasts suggest that overall festive spending will be less than half pre-pandemic levels — costing the West End economy more than £1.2 billion — despite the steady increase in footfall since schools returned in September.

Business chiefs said Londoners could “play their part” in helping the West End by “making time to shop... grabbing a bite to eat at our hard-hit restaurants, and catching a show”.

They are expecting to attempt to “kick-start” the season by switching on Christmas lights on all streets across the West End simultaneously, rather than having separate ceremonies.

The appeal came as the latest survey from the London Chamber of Commerce and Industry concluded that remote working will keep thousands of commuters out of the West End and City in the run up to Christmas — and for the foreseeable future.

The annual London Business 1000 research found that 44 per cent of businesses expect that more than half their staff will still be regularly working remotely in 12 months’ time. Among large employers the proportion rises to 59 per cent.

It will also be the first peak spending season since Chancellor Rishi Sunak axed the 20 per cent tax-free perk for foreign tourists visiting London, a move that Paris has been quick to exploit with a massive marketing blitz.

New data from flight bookings analysts ForwardKeys show December bookings to the UK standing at just 51 per cent of the level of 2019. Flights scheduled between the UK and US in November are also only half the levels of two years ago.

Jace Tyrrell, chief executive of the New West End Company, which represents 600 businesses in Oxford Street, Bond Street, Regent Street and Mayfair, warned that cities such as the French capital and Milan were threatening to “eat our proverbial Christmas lunch”.

He said: “The long-term recovery of the West End is well on its way this winter, but we can all play a part in speeding up that return by making time to shop on our high streets, grabbing a bite to eat at our hard-hit restaurants and catching a show.

“One in 10 Londoners work in the West End, and it has been heartening to see UK shoppers filling the district with optimism and supporting our colleagues, but that wealth of choice and world-renowned retail depends on encouraging high-spending overseas tourists to return.”

Simon Cotton, chief executive of cashmere specialist Johnstons of Elgin, said: “Sales in our New Bond Street store have started to recover a little in the last few weeks.

“We have seen a slight return in international travel, but sales are still very far short of 2019 levels.

“The Government’s decision to end tax-free shopping will undoubtedly still have a strong negative effect on sales long after the pandemic, with wealthy tourists choosing to shop in Paris or other European cities, all of which provide tax-free facilities.”

Small businesses said plans to axe the congestion charge after 6pm should be brought forward to give London’s night-time economy a pre-Christmas boost.

Mayor Sadiq Khan is due to decide later this month whether to confirm that the C-charge will return to 7am-6pm during the week, after extending it to 10pm at the start of the pandemic.

However the changes, which are also expected to reduce its operating hours at the weekend, are not due to be implemented until February 28 next year.

Today the Federation of Small Businesses called for the £15 charge to end at 6pm from December 1, saying the recovery remained “fragile”.

FSB London policy chair Rowena Howie said: “The Mayor has closed the consultation period for the congestion charge changes, and one pro-business step he could make is to bring forward his preferred changes to December 1, to give the night-time visitor economy an even bigger boost as we still await international tourists to return.”

Westminster council leader Rachael Robathan said: “While shoppers and commuters are returning to the West End, it’s clear those numbers are nowhere near pre-pandemic levels and that is deeply worrying for retailers who have endured a tough 18 months.”

But luxury goods trade body Walpole’s Helen Brocklebank said there were reasons to be optimistic. She said: “The post-pandemic luxury boom is still weaving its magic and customer spend in the West End is really strong.”

Mr Khan said: “Sadly it could take some time for international tourism to return to pre-pandemic levels. That’s why I launched Let’s do London, the biggest domestic tourism campaign the capital has ever seen, to encourage people in the UK to take a break in London.”