The Prime Minister Boris Johnson announced yesterday that the lifting of all legal restrictions on social contact will be delayed, meaning capacity limits for sports, pubs, restaurants and cinemas will remain and nightclubs will not yet open.
England was due to move to stage 4 of the government’s roadmap out of lockdown on 21 June where capacity limits would have been removed.
The delay comes after a rise coronavirus cases and the worry of the delta variant which accounts for a large number of UK cases. The PM said that the 4 tests for lifting restrictions had not been met and the delay will allow the NHS to increase vaccinations with the aim of vaccinating 2/3 of adults by Monday 19 July, including everyone over 50, all vulnerable adults, frontline healthcare workers and all over 40s who received their first vaccine by mid-May.
Step 4 of the recovery will be held off until 19 July where government will review again. There was however an exception in the form of weddings and wakes which will see the cap on the number of guests scrapped from 21 June.
Sharon Smith, Chief Executive of Herefordshire & Worcestershire Chamber of Commerce, said:
“Disappointing it may be for certain businesses, the announcement of the delay in easing all legal restrictions appears necessary in the long-term recovery plan. Businesses main priority is ensuring that another national lockdown, resulting in forced closures, does not occur again so this cautious approach will be accepted by many.
“However, for those businesses who were counting on capacity limits to be removed, they face an anxious 4 weeks. With already stretched cash reserves another 4 weeks for some maybe enough to push them over the edge. Any delay in progress should come with further support for those businesses at a breaking point. We will eagerly await any further announcement from the government on how they plan to support businesses through this time.”
Claire Walker, Co-Executive Director of the British Chambers of Commerce, said:
“Businesses will be disappointed by this setback to the reopening in England. This delay to the removal of restrictions will come as a hammer blow to those firms who must remain closed, and to those who continue to see their ability to trade severely restricted.
“Many firms have fought incredibly hard to stay afloat throughout the pandemic and are struggling with the damage done to their cashflow and revenue. They are desperate to play their part in the recovery. We must ensure they receive the support, and the clarity, that will give them a chance to do that.
“It would be extraordinary if we saw government retracting support to businesses now, given that some firms will remain unable to fully trade and others effectively forced not to trade at all.
“The government must provide further cash grants, at least equivalent to levels provided during the first lockdown, and delay the tapering of government payments into the furlough scheme, planned for the start of July. The government should also consider extending the trade credit reinsurance scheme beyond the end of June to minimise possible disruptions in insurance coverage.
“An extension of the VAT deferral scheme and the 100% Business Rates relief for eligible businesses should also be considered given the length of the delay and the impact on hospitality and leisure firms.”
For further information on the guidance and support available please visit our Coronavirus Business Support Hub.