Rishi Sunak considers emergency measures for hospitality, tourism amid ‘unofficial shutdown’

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The Confederation of British Industry warned of a “closing in disguise”, as Britons then began to move away from social gatherings and places of hospitality. The CBI and other industry bodies have said companies will need a new support package, similar to those the Treasury provided during previous Covid-19 restrictions, to survive.

A government source said, “We are not in the same financial position as we were last year. We have to be very precise about what funding is needed and where.”

Some industry bodies are pushing for more cash grants to cushion the large losses that companies expect to incur over the next two weeks. Others focus on urging Mr. Sunak to revive the emergency 5 per cent rate of value-added tax for hospitality and tourism companies, and re-release business rates of 100 per cent for retail businesses “to give businesses the financial leeway to weather this difficult period”.

Last night, the chancellor was said to be considering all options, while “trying to determine the best support, where you need it, and for how long?”

With some scientific advisers lobbying for more restrictions as soon as this week, Mr Sunak also had to consider what additional help companies might require if Mr Johnson chose to introduce new measures, as yet to be determined.

Government advice on social interaction

Last week, Prof Whitty said at a press conference in Downing Street that people should “prioritize the social interactions that mean the most to them” in the following weeks. Johnson said the public should “think carefully” before attending any social gatherings, especially those involving strangers.

Meanwhile, a report from the Conservative Policy Forum called on ministers to “work for a smaller government with fewer laws and regulations”.

The report, which has been passed to Downing Street and senior ministers, is based on a survey of 83 local Conservative Policy Forum groups across the country, representing nearly 700 Tory members in 140 constituencies. That will increase pressure on Conservative MPs Boris Johnson and Rishi Sunak to resist tough Covid-19 restrictions that have led to a revival of massive subsidies for businesses and workers, such as the furlough scheme.

Fundamental Conservative Principles

According to the paper, two out of three Cooperative Partnership groups (68 percent) agreed that “government intervention has enhanced sense of entitlement” and warned of the “daunting task of restoring expectations.” Members are said to have stressed the importance of ministers adopting “basic principles of conservatism” such as “freedom, personal responsibility, and a light touch by the state” in order to keep the party in power.

Several suggestions were made by multiple groups, with members warning that the tax system is “too complex” and in need of reform.

The report summary added: “Members will encourage the government in its efforts to ‘pursue a strong economic growth policy through incentives for free enterprise’.”

Participants in the groups also expressed concerns about the backlog that has arisen in the NHS and schools due to the pandemic.

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