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MORE than a million hospitality and leisure businesses are at risk of collapse over the next three months, according to new data.
Businesses surveyed, including hotels, pubs, salons, and restaurants, say they have less than three months of cash reserves during the ongoing Covid-19 lockdown.
The figures come from Labour’s analysis of the latest Office for National Statistics survey.
Despite reports that the ongoing lockdown could last until May, there has been no update from the government on the economic support available to businesses since January 5.
Labour is accusing ministers of “economic negligence” if they fail to act.
Under the government’s current offer, hospitality or leisure businesses receive on average £11,000 less than during the first lockdown, despite them now being in a significantly worse financial position.
Shadow business minister Lucy Powell is calling on Business Secretary Alok Sharma to urgently explain how he will support struggling firms to prevent more insolvencies and unemployment.
She warns that failure to do so would mean the Tories would be “guilty of economic negligence that will choke off the recovery and damage our country for years to come.”
