Should hospitality be furloughed again this winter?

[User135644]

The energy crisis is going to be catastrophic and there's no cap for businesses. If we do nothing basically the vast majority will be forced to shut and then we've got support people with benefits etc and less tax revenue.

Given people are already going to be hard up, could we just furlough all the pubs and restaurants for the winter while we try to work out a solution to this madness? I'd hate to see all the pubs shut for good otherwise.

No a loacal cafe owner did a go fund me page a few months ago to pay her fuel bills..

That money will have been spent now snd they are still in exactly the same position just a couple of months down the road.

I run a business in this industry and even I think this is ridiculous.

For “starters” it’s not just hospitality, every small business will suffer, you can’t just help one without the other, everyone would have to get help.
It’d also do little towards the energy costs which are just too massive.
And I say that after fixing my commercial energy contract at the beginning of this year.
The reality is, the price I fixed per unit is 48p for electric, and that’s in a building that’s only 2500 square foot ( think large 5 bed house )
My unit rate is cheaper than what the new domestic price cap will be, I’m lucky to have fixed in February because I honestly couldn’t afford to be out of contract now.

my 48p unit rate has still seen my energy bills rise from 8k to 32k

Every business is going to be affected. You can't pick and choose. And the resentment between those working several jobs just to survive and those being paid to sit at home and do nothing would be hideous.

I work in a public sector role, and last time I had to deal with people on furlough posting banana bread, happy homeschooling children and sunbathing while I coped
with double workload, begging for 2 days a week in school for my children to try and carve some time to do it at least semi properly and then being told that the public sector were all clearly doing nothing while still being paid. I was suicidal by the end.

@User135644 apart from spending on infrastructure helps to curb inflation. Direct government support increases inflation.

There is no point, energy prices are going to stay high for a while. Some businesses will collapse and some will survive, propping them up now just delays the inevitable.

It’s not feasible. Many of the staff will sadly end up on benefits anyway. A lot of students rely on the hospitality and retail industries to support themselves so they’re going to be struggling this year too. They’re not eligible for benefits either.

No, sorry. It is not the saviour to everything, it's just delaying an issue. There are millions of people that need help for different reasons, it would be completely unreasonable.

Wd will end up with Kfc and wetherspoons only soon

Only the 500,000 who are immune suppressed and form no immune response to vaccination should ever be eligible for furlough if they cannot WFH.

For they are at the same risk as at the start of the pandemic, because they are unprotected, and more vulnerable to severe disease, and are still advised to avoid mixing indoors.

No one should be forced into an indoors workplace in their circumstances (the British government being the only one of all those countries who have announced a decision to refuse Evusheld, the prophylaxis that would mean the end to that precautionary advice)

Would any of rhose staff be interested in working in other jobs like healthcare, social care, delivery services and warehouses.

Yes, still plenty of money around. My workplace has some people on just above minimum wage (but half semi retired with mortgages paid off and plenty of disposable income), a couple on just above the average wage and half a dozen on £70-100k a year. Some of us are barely going anywhere and worrying about energy bills, some are going out several times a week and having lovely holidays!

No.

My neighbour has opened a coffee shop recently despite having no catering experience whatsoever. She's struggling with huge electricity bills but the business was always going to fail and I'd be horrified if the ratepayer was expected to prop it up. My town centre is awash with coffee shops and I don't know how they could all be supported.

There will still be people with disposable income who will still use hospitality.

In ever decreasing numbers. It’s pointless predicting the future on what’s happening now. Christmas will be interesting when the higher bills start to bite.

I just read a post on FB saying my local pub is closing permanently due to rising energy costs. A friend runs a pub and her electric bill next year is going to be £85000. I don't think furlough is the answer but something needs to be done or a lot of places will close and a lot of people will be unemployed.

No! They should be able to apply for an energy subsidy though, keep people coming in, turn parts of bars into evening coffee and soup lounges, have 100 in instead of 50 homes heated.

Keep people employed and the supply chains.

I literally can't believe this conversation is being had.

Energy experts knew this day was coming and they were ignored

I think quite a lot of people are having final flings before the price rise takes hold. The pub industry project 70% of pubs will close this winter.

But where does it end? If you reckon people won't be drinking/eating out then think a bit harder and deeper. People won't be going to the theatre, the cinema, the hairdresser, beauty treatments, shopping for new clothes...the list could be endless.

If we have a situation where people are squeezed for every penny and need to tighten their belts to focus on food and paying for the basics then all luxuries will go. You can't furlough EVERY industry that people don't absolutely need.

No

This recession is due to covid - the world is bankrupt - every country is in recession and has an energy crisis not just Europe. The added inflation in Europe is due to the Russian war on the Ukraine. Throwing money at this won't help it'll sadly prolong the recession.

What we need is investors putting solar and batteries in everyone's home (with security obvs so try don't get knicked). They you pay the investor for energy you use from the system and a utility company for any extra. This should bring electricity bills right down esp if we're all sensible about what we are consuming.

Government needs to step up and make this happen. Not everyone has £10-12k hanging around to pay for this, but a reasonable ROI for an investor might make it work.

But it's up to us to reduce or energy use. Turning off everything that is not needed. I don't mean leave it in standby I mean switch it off completely. Many appliances consume as much energy in standby as thry do in operation - microwaves with clocks and dishwashers are notorious for this.

As it gets colder, keep your thermally insulated curtains shut. Get a big fluffy houseboat the wear indoors, wear socks abd slippers too. Put pets in coats. Seal up drafts use clingfilm and a hairdryer to add secondary glazing to windows. Put tin foil behind radiators. Only heat rooms you use and close off rooms you're not using.

There are still lots of basic things we can all do. Do a Google search and find out as much as you can and change how you live.

I feel for small business owners, I do. But furlough is not the answer :( and let's be honest, the fact that many didn't declare their full earnings caused them probs during covid with the furlough scheme.

For business, reducing employer NI contributions has always been a good way of helping companies retain employees - that's what we need in place not tax cuts per se.

This is going to be a very tough winter esp if its cold so let's hope its a mild winter 🤞🤞🤞

The government needs to sort out the cost of living crisis for everyone, then they won’t need to furlough hospitality! It’s not just the fuel bills for the companies, it’s that people won’t be able to afford to patronise them.

Something needs to be done for businesses...... I spend a lot of time in the lake district and whilst it's busy the restaurants and bars arent anywhere near as packed as they used to be because, understandably people are bringing picnics more instead of buying a meal. The co op was packed full of people buying boxes of ice creams and packs of drinks because its more economical.... These businesses have been hit twice, so many are going to close and so many jobs will be lost. Thats even less money going into the economy.