UK hospitality employers could cut half a million jobs

Britain’s largest hospitality lobby said members owe landlords $5.1B

National Weekend Edition /
Jun.June 12, 2021 12:00 PM
The Savoy Hotel in London, UK in 1980 (Getty)

The Savoy Hotel in London, UK in 1980 (Getty)

Britain’s largest hotel lobby warned that employers may cut half a million jobs when the government ends its wage support program.

A representative for UK Hospitality told Parliament on Monday that its members owe around $132 million in back taxes and owe landlords roughly $5.1 billion, according to Bloomberg News.

The government’s furlough program has helped draw investment to the United Kingdom’s pub and bar sector.

“All it takes is one landlord to be recalcitrant and to not concede or not negotiate and it could be enough to trigger insolvency across the whole of the estate,” UK Hospitality’s Kate Nicholls said.

She also warned that those debts will become an unsustainable burden if the British government does not follow through with plans to drop all lockdown rules by June 21.

Some government officials have said a full reopening may not be possible because a new variant of Covid-19 has been spreading in the country.

The pandemic hit U.K. hospitality providers hard, like the rest of the world. The U.S. hospitality industry was down about 411,000 jobs in December 2020 from a year prior, though it has recently showed some signs of recovery and led employment gains for the last several months.

But even when a full reopening does happen, Nicholls said the U.K. industry is facing a unique challenge: the loss of migrant workers to the European Union. She said the government should introduce an emergency recovery visa for workers to return.

[Bloomberg News] — Dennis Lynch


Related Articles

arrow_forward_ios
New York City Comptroller Brad Lander (Office of New York City Comptroller Brad Lander, iStock)
Office occupancy in New York finally hits 40%
Office occupancy in New York finally hits 40%
Cipriani CEO Giuseppe Cipriani and Casa Cipriani New York (Getty Images, Cipriani/Photo Illustration by Steven Dilakian for The Real Deal)
Cipriani may have refi savior in King Street Capital
Cipriani may have refi savior in King Street Capital
(iStock/Illustration by The Real Deal)
Real estate agents landed $3.9B in PPP loans: report
Real estate agents landed $3.9B in PPP loans: report
(iStock/Illustration by The Real Deal)
Leisure, hospitality, construction lead strong May job gains
Leisure, hospitality, construction lead strong May job gains
Rendering of the new San Siro Stadium (Populous, iStock)
Fans calling foul over plan to replace Milan’s soccer stadium
Fans calling foul over plan to replace Milan’s soccer stadium
Chinese President Xi Jinping (Getty)
China bans government elites from holding overseas real estate assets
China bans government elites from holding overseas real estate assets
Strong month for US economy, but hospitality hiring slows
Jobs report shows more workers returning to office
Jobs report shows more workers returning to office
(iStock, Illustration by Kevin Cifuentes for The Real Deal)
Office occupancy hits pandemic high
Office occupancy hits pandemic high
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...