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‘Likely to be taken under!’ Hospitality sector faces crisis as government supports ends


Mazars, insolvency firm told the Telegraph the full extent of the pandemic’s impact on hospitality has yet to be seen. There are reports restaurant and hotel closures are rising and will reach high levels next spring. 

Partner Rebecca Dacre told the Telegraph: “It is clear that we have yet to see the full extent of the pandemic’s financial hit on hotels and restaurants.

“Businesses that are just keeping their head above water are likely to be taken under by the end of government support schemes, the repeated cost of reopening and restocking, difficulty recruiting staff and lower occupancy or covers due to people’s changing habits or working patterns.

She added: “Those businesses that have benefited from UK tourism this summer may still find themselves looking for support after the holiday season ends.

Wagamamas have been affected by labour shortages, with reports of a fifth of its restaurants  finding it difficult to hire chefs.


In August last year Chancellor Rishi Sunak introduced the Eat out To Help Out Scheme to boost the hospitality sector after the first wave of coronavirus.

The government also introduced the furlough scheme and block winding up petition to prevent lenders from asking courts to shut down businesses which owe them money.

However, this block will be lifted by October and the furlough scheme will stop. 

The furlough scheme has cost the UK government more than £64 billion.

READ MORE: Vaccine passports needed for large venues to avoid Covid lockdown

“As part of our vision to transform high streets into thriving places to work, visit and live, we intend to make as many of these measures permanent fixtures of British life as possible.”

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