"Final nail in the coffin"?: Businesses react to return of lockdown

Businesses and leaders from across the UK have reacted to the government’s announcement that the UK will go back into a month-long lockdown.

The lockdown will start this Thursday (5 November) and last until 2 December, with all restaurants, pubs and ‘non-essential’ retailers closing over this period.

Leaders across various sectors have commented that while the lockdown is “necessary to save lives”, it could mean a “financial armageddon”, with retailers set to see supply chain shortages across the Christmas period.

Michael Kill, Night Time Industries Association

“The announcement from the Prime Minister will leave Night Time Economy businesses facing a ‘Financial Armageddon’. It is the most horrific of Halloweens.

“It’s frightening to think that given the gravity of the situation, we are still being given limited communication, consultation or time to respond, or plan around these decisions.

“The entire Night Time Economy consisting of thousands of businesses and hundreds of thousands of workers are suffering.

“Their plight is being made even worse by the huge void in financial support for the sector.

“Many of our businesses have experienced extreme financial hardship, been presented with unmanageable operational measures and have in some cases been forced into complete closure since March.

“We are extremely concerned for business owners, operators, freelancers, creatives and people working within this sector.

“The level of despair and financial pressure this government has placed them under can only be described as slow torture.

“As a result we are seeing a substantial rise in people suffering from deteriorating mental health, with many simply unable to support themselves or their families.”

“This will be the final nail in the coffin for many night time economy businesses.”

“Without immediate and significant government financial support and an exit strategy, it is not an exaggeration to say that this will be the final nail in the coffin for many night time economy businesses.

“And even with support, many viable businesses will be lost.

“This moment will go down in history as the moment that the government destroyed a globally significant sector through poor communication and mis-management.”

Dan Jarvis, Mayor of Sheffield City Region

“We should not be in this position. The government’s own scientific advisors gave clear advice on the need for a lockdown almost six weeks ago, and warned that not acting immediately to reduce cases would have catastrophic consequences.

“These restrictions are necessary to save lives and it is right the government has finally acted.”

“If that was not enough, there was a brutally clear lesson from the first wave about the cost of delay both in lives and economic damage.

“The government nonetheless chose not to accept this advice, and real harm will have been done as a consequence.

“However, these restrictions are necessary to save lives and it is right the government has finally acted.

“But now they have been announced, we must make them work, or the sacrifice we are being asked to make will be wasted. We must not repeat the mistakes of the past eight months.

“We need proper support to individuals, businesses and councils, so people can afford to follow the rules and not be driven into destitution if they become unemployed, so we minimise the harm to the economy, and so we can keep essential services running.

“The government must base its decisions on the nature and duration of the restrictions on the best available science, and be crystal clear in its communications.

“Above all, this lockdown must be integrated into a robust, long-term plan to manage the virus.

“The point of a lockdown is to buy time to strengthen other measures, and especially to fix the test and trace system.

“The government must fully fund local authorities to carry out local test and trace, and get a grip of the outsourced, Serco-run national system.

“The government must do all this in collaboration with local and devolved governments.”

Sarah Coles, Hargreaves Lansdown

“A second lockdown, in the middle of peak Christmas shopping season, is going to scupper our shopping plans.

“We face going online, and running into bottlenecks and delivery delays, or waiting until December and crossing our fingers we’ll be allowed back onto the high street.

“An impressive number of us got ahead of the game and started shopping well before lockdown was announced.

“However, the bulk of the shopping remains, and with essential shops shut, we’re either going to have to leave it all to the last minute, or go online for Christmas. Both could be problematic.

“We’re likely to see the worst shortages for a decade.”

“If you go online, especially if you plan to shop in the sales or leave some items to the last minute, you could run into delivery problems.

“Retailers could be overwhelmed by a surge in orders while trying to socially distance in warehouses and deal with demand for deliveries. There’s a risk shoppers will be unable to get presents delivered in time for Christmas

“If you decide to cross your fingers and leave it to December, there’s a risk that key items will sell out.

“The pandemic has interfered with supply chains and deliveries, and toy retailers are warning we’re likely to see the worst shortages for a decade.”

Derek Cribb, IPSE (the Association of Independent Professionals and the Self-Employed)

“Government must urgently fix the unfair disparity between employee and self-employed support.

“Right now, the self-employed can claim just 40 per cent of their earnings compared to 80 per cent for employees through the extended furlough scheme. This cannot stand as we enter a second national lockdown.

“Crucially, government must also make sure it extends the Self-Employed Income Support Scheme to all self-employed people.

“The gaps in support in the first lockdown – such as limited company directors and the newly self-employed – led to the biggest drop in self-employed numbers on record. Many thousands lost their freelance businesses and were driven onto Universal Credit.

“Now, those limited company directors and other excluded self-employed who made it through on their savings face financial calamity if they do not get support in this second lockdown.

“Government must urgently increase the amount paid through SEISS and extend it so that all of the UK’s 4.6 million self-employed are supported.”

**Adam Marshall, BCC **

“There’s no getting around the fact that these new restrictions will be a devastating blow to business communities who have done everything in their power to adapt and operate safely.

“Business and market confidence have been hit hard by the unclear, stop-start approach taken by governments across the UK over the past eight months, with little end in sight.

“Many firms are in a much weaker position now than at the start of the pandemic, making it far more challenging to survive extended closures or demand restrictions.

“The government must not squander the time afforded to them.”

“The temporary extension of the furlough scheme will bring short-term relief to many firms, and responds to Chambers’ call for business support to be commensurate with the scale of the restrictions imposed.

“The full financial support package for businesses facing hardship, whether through loss of demand or closure, must immediately be clarified and communicated.

“Sustained help must be available to employers, to the self-employed and to the many businesses and individuals that have not been able to access any of the government’s schemes to date.

“The government must not squander the time afforded to them through another lockdown to enable mass testing and fix Test and Trace systems - which hold the key to a lasting exit strategy for both public health and the economy.

“We will be examining the detail of new restrictions and support carefully over the coming days, together with Chamber business leaders across the country.

“Business communities will judge them on whether they are clear and evidence-based - and on whether businesses are able to see when these restrictions may come to an end.”

Ian Wright, FDF (Food and Drink Federation)

“Confirmation that the furlough scheme will be extended is extremely welcome news for food and drink businesses who continue to feed the nation. However, we need further clarity that the food supply chain will be supported sufficiently.

“Without further reassurance thousands of jobs will be under threat as businesses consider closing their doors for good. The economic impacts of this decision threaten calamity unless we see further details of a rescue package in the next 72 hours.”

Fiona Carragher, Alzheimer’s Society

“Coronavirus has wreaked devastation on people with dementia, worst hit by the virus, and their families. Thousands have died, not just from the virus, and many more have been badly affected by the isolating effects of lockdown, in the community as well as care homes.

“While it is important to protect the vulnerable with necessary precautions, designated family carers are an integral part of fundamental care and must be allowed to visit care homes, with testing and equipment in place.

Coronavirus has laid bare the dire state of social care.

“Otherwise, we face increasing numbers of people with dementia giving up on life, not understanding what is going on or why they’re not seeing the people they love, and experiencing the things they live for.

“The government must never abandon families affected by dementia again and learn the lessons from the first lockdown.

“Coronavirus has laid bare the dire state of social care for all to see – the lasting legacy from this crisis must be a universal social care system, free at the point of use, that provides quality care for every person with dementia who needs it.”

Glen Sanderson, Northumberland County Council

“I’m pleased to hear that the furlough scheme will be extended throughout November, helping to protect local jobs and our economy, which will be welcome news to many.

“However, I am seeking further clarification from government as soon as possible around what support is available for those businesses affected, including our tourism and hospitality sector, as well as support for those that are self-employed. “