Omicron restrictions could knock £4bn off economy in hospitality ‘body blow’

UK businesses have warned that new rules to slow the spread of Covid-19 will lead to a wave of closures and cost the economy £4bn. The Institute of Economic Affairs said the rules could “easily” knock 2% off GDP. Others, including the British Chambers of Commerce, have said that some form of state aid will be needed. Spencer Craig, chief executive of sandwich chain Pure, said he had had “chills” hearing about working from home and vaccine passports. “It’s absolutely horrific,” he said, adding that sales at Pure’s London outlets would be likely to drop by at least 50% in a day. Kate Nicholls, chief executive of UK Hospitality, which represents pubs, restaurants, hotels, coffee shops and leisure centres, said some would not survive Christmas. She predicted that revenue from hospitality would fall by 15% to 20% as people working from home were likely to limit their socialising. Craig Beaumont, chief of external affairs at the Federation of Small Businesses, said the measures would be a “body blow” to a hospitality industry already struggling after successive lockdowns. The Times (£) The FT (£) The Guardian