‘Jobs will go,' warn landlords as new pub restrictions come in
Landlords say their staff could lose up to a quarter of their wages because of the new restrictions
Friday, 25th September 2020 — By by Sam Ferguson

The Lamb’s Ade Clarke
CORONAVIRUS curfew hours for pubs and restaurants could be the “straw that breaks the camel’s back”, businesses have warned.
New government restrictions aimed at slowing the spread of Covid-19 include a demand for them all to close by 10pm.
Martin Whelen, who runs the Tollington and Big Red bars in Holloway, as well as the Lincoln Lounge near King’s Cross, told the Tribune it was inevitable staff would lose their jobs.
“It’s a pure fiasco,” he said. “In August, the government was telling everybody that everything was back to normal. They just don’t have a clue.”
Mr Whelan explained the Big Red bar only reopened on September 3, but now it would have to close down again because of the new restrictions.
“We recently paid £3,370 for a late-night licence there,” he said.
“We stocked everything back up and started planning for Christmas. Then we were told this week that we have to lock up again. We’ve been paying since March for three late-night licences we can’t use, and now it’s happened again. This could be the straw that breaks the camel’s back.”
He added that the Tollington would stay open for now, but would have closed if it had been unable to show football matches. The Premier League has now changed from 8.15pm kick-offs to earlier starts so fans can squeeze in the match before closing time.
“I’ve had a meeting with the staff, and told them that some of them will be on the dole,” he said.
“I can’t run a business like this. This behaviour should be bringing the government to its knees. There is no evidence that closing pubs will help.
“The government told people to go out and eat and drink as much as they can. And now they are blaming those pubs and restaurants that followed their advice and rules to the letter.”
Ade Clarke, who runs The Lamb in Holloway Road, said there was a sense that pubs and restaurants had been treated as scapegoats.
“We’re worried about the fact that our staff will all be earning eight hours a week less,” he said.
“They’re all on hourly pay, and taking these hours away from them is a 25 per cent hit on their wages. They will struggle unless we can find a way to make the new measures work. We might try to open earlier. Or we might have to put a service charge on orders, with all the money from that going to cover staff’s lost wages.”
Mr Clarke added: “We’ve all seen the horror stories, but in general not many of the spikes have been linked to pubs and restaurants. Everybody knows the failings of the track and trace and testing systems. The worry is the Government just wants to be seen to be doing something, and we’re bearing the brunt.”
In the measures announced this week, office workers were also encouraged to work from home, as the Government U-turned on its drive to get people back at work.
The restrictions are expected to be in place for six months. Yesterday (Thursday) Chancellor Rishi Sunak outlined his “winter economy plan” and a “jobs support scheme” will replace the furlough scheme from November.
It will give bosses the option to keep staff on for shorter hours rather than making them redundant.
Workers will have to work a third of their normal hours, with the Government and employer then topping up the two-thirds lost. Business owner and Archway town centre group vice-chair Hak Huseyin said he welcomed the chancellor’s announcement but said more needed to be done to support hospitality businesses “on the edge”.
“I think overall this is a positive step, and I hope there won’t be much of a gap between both support schemes,” he told the Tribune.
“This gives bosses the chance to keep staff working. The problem we’re all facing as smaller businesses is surviving. It’s not about making a profit at the moment, it’s about getting through. I do think the hospitality sector needs some more help.
“In Archway the ‘Eat Out to Help Out’ scheme really plugged a hole for these businesses, and now their hours have been cut too. But the government has to juggle keeping businesses running and stopping the spread of infections. That’s the problem they’ve got.”
As the Tribune previously reported, many smaller businesses in the borough are struggling from a lack of office workers who make up their customer base on a daily basis, buying lunches and shopping near their jobs.
Alexander Jan, chairman of the Midtown Business Improvement District, which covers Farringdon and Clerkenwell, told the Tribune the new messaging around working from home was “very disappointing”, adding: “It’s a blow for a lot of companies, particularly in our area, who have been waiting for workers to come back to the office, and it’s a blow nationally too, for the whole economy.”
He added: “A lot now will depend on the success of the financial schemes that the Government have announced. But then there’s a longer term picture to worry about here too. For how long can businesses up and down the country last with all these constant changes?”
A spokesman for No 10 said: “No one underestimates the challenges the new measures will pose to many individuals and businesses. We know this won’t be easy, but we must take further action to control the resurgence in cases of the virus and protect the NHS.”
Government support announced on Thursday Jobs support scheme: l Eligible staff will get 77 per cent of their pay for six months from November. l Workers must work a third of their normal hours as normal, while the remaining two thirds of their pay will be topped up by the Government and employer. l Scheme targeted at small and medium-sized businesses with larger firms only eligible if they’ve lost a third of their turnover. l Will only apply to “viable jobs”, as opposed to jobs that only exist because of the current furlough scheme. l Grant for self-employed people available on similar grounds. Business Loans: l “Pay as you grow” business loans to help firms pay back previous state-backed business loans. l Previous loans extended from six to 10 years, which should almost half repayments. l Interest-only payments can be made, and struggling firms can stop repayments for six months. l VAT bills for businesses can be spread over 11 payments. l State-backed loan scheme extended until end of 2020. Hospitality sector: l Planned VAT increase from 5 per cent to 20 per cent suspended until March 31, 2021.