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.

God no, the Covid furlough scheme was abused terribly and that cost (and still is) billions.

And it's such wasted money. People pouring every last penny they have on energy, which vanishes never to be seen again, rather than circulating round the economy, creating income.

I'm seriously worried about my business.

Any solution has to come in subsidies on energy prices or equivalent reductions elsewhere eg rates and VAT. Hospitality are just the most visible but every single business (and therefore very single employer) will be affected. It is not just small businesses either. Manufacturing will be very badly hit and as we have seen you really don't want all that moving to China. The lack of a Government response on this is really poor.

And power companies bleating about how they just pass through increased costs? Clearly that is bollocks given some of the numbers being quoted. No one should be profiteering out of this. I'd definitely vote in favour of a super tax which stripped them of all profits above a five year average, (excluding the last 12 months, which were abnormal anyway).

I'm surprised at the pp who don't foresee a problem because their local restaurants are still busy.

We have barely entered recession. The data released last week showed a tiny contraction of something like 0.1%, a prelude to recession really.

Restaurants are still busy with those who don't think it'll be that bad, or that they don't need to worry because the government will step in, or those who are too young to truly remember living through one, or those with recession-proof jobs and top 10% salaries. We are also in the last gasps of the summer holidays, and no one has put the heating on yet.

If the BoE are forecasting a prolonged and significant contraction then that is exactly what we can expect and gradually people will start cutting back on non-essentials.

The fact that people think that you should be furloughed if you sneeze shows how batshit the public has become regarding damaging policies like this.

Have you been living under a rock for two years? The reason we have this inflation is because of furlough and shutting down entire industries.

No. No furlough ever again.

No.

I would have reported that as fraud in those circumstances

I was wondering this morning whether hospitality will start reducing their hours - closed on quieter days, open lunchtime and evening only on busy days, as they used to be.

Would reduce their staff and energy costs - and when their target audience are inevitably going to have less disposable income, would compress the money they take more efficiently.

No to furlough. But it's not just going to be hospitality, it's going to be every kind of business - from manufacturing, to hairdressers to pharmacies.

No, furlough created as many problems as it solved, albeit different problems. The energy crisis needs to be solved as an energy crisis, sticking plasters won’t help.

The question is… would you be willing to pay £14.85 for a pint in a pub?

Because that will be the average price in 12 months time, given the increased costs.

c.70% of pubs will not survive it. That’s our culture and a fuckload of jobs gone overnight.

Government must do something, but don’t think furlough is the answer this time.

No

No. I work in hospitality & furlough would be an awful idea. We might be quiet now but soon the Halloween/Christmas period will start & that's when we have the most takings. If we were shut we'd miss out on so much. Not to mention I can't handle the boredom of another furlough stuck at home 😑

I gave huge sympathy for individuals who are affected

But furlough isn't the answer

It would be unfair on other industries and many pubs were closing anyway. No point in delaying the inevitable

I wonder how those spaces could be used, in the modern world? Perhaps communal work spaces for people who don't want to work from home?

I wonder how those spaces could be used, in the modern world? Perhaps communal work spaces for people who don't want to work from home?

Considering it is energy killing everyone now, I don't think this, or many other uses, would be feasable. Plus rent, rates, insurance, etc. If pubs don't make enough money a rental table with coffee machine won't either. Nor will many, many, other types of businesses.

Do you remember 2008 and so many blarded up shops? Well there we go again but 50x worse

Only the Wetherspoons will survive this, or other places with rich owners.

I don’t agree. The places that will survive are those with a well established, loyal clientele in relatively affluent areas and those attached to another business - the cafes in garden centres, branches of Waterstones, etc. Special occasion venues will probably be OK too, as will restaurants that do takeaway which will become their core business.

I think small to medium business should get help from the government. If we helped banks back in 2008 (when the recession hit), it is now small business turn for help.

I would very much argue with the last point because even takeaways are having issues with dip in takings AND bills going up. Restaurants have bigger oitgoings and they can't sell takeaway at same price like their menu is now. Most wouldn't buy it if they have other options.

We also have places with loyal customers closing. Well established independent places. Bills. 10k to 30k just like that.

We will end up with lfc and Wetherspoons

Also note that SMEs are the majority employers in UK. Will be terrible if this keeps going

No, no, no.
Fixed the current problems with the cost of living and energy crisis. If ain’t broke, don’t fix it.

Tbh that would actually fox the current problem for business too.

It all comes back to the energy really

A local cafe owner told me that her energy bill was £10k last year but her supplier is now forecasting £55k for next year. She's going to close at Christmas. It's a busy place with loyal customers but, as she said, she'd have to put a pot of tea up to £6 and people won't pay it.