An extension to the Jobs Retention Scheme, announced today by Chancellor Rishi Sunak, has been welcomed across the hospitality industry.

“The extension is particularly important to pub and brewery staff as they will not be able to return to their work as quickly as other sectors,” said Emma McClarkin, chief executive of the British Beer and Pub Association.

“Yesterday, we were given a glimmer of hope that pubs could re-open in July, and we will work hard with government to help this happen safely. However, if pubs and breweries are expected to pay a proportion of furlough costs whilst remaining closed, it could still lead to significant job losses for our sector. Pubs and breweries cannot remain closed with no revenue coming in, but be asked to cover a higher proportion of employment costs.

“The increased flexibility announced today, allowing for part-time working beyond July, is imperative and also welcomed. It will enable pub and brewery staff to come back on a part-time basis, which will be crucial as pubs and breweries re-open under social distancing restrictions.”

Emma added: “The government has done absolutely the right thing by extending the scheme, and we hope it will prevent job losses. We will await to see the full detail at the end of the month, so that we understand how much it will help our sector and how it will work in conjunction with the re-opening plans for pubs and breweries.

‘Without additional financial support, the social hubs and hearts of communities will remain at risk’

“In the meantime, we continue to urge the government to bridge the significant gaps in the current financial support our sector faces, as we ask them to help us get back on our feet whilst we re-open under social distancing conditions. This means removing the £51k rateable value cap on grant eligibility, as well as extending grants, improving access to loans, and further support for brewers on beer duty.  

“Without additional financial support, specifically for pubs and brewers, the social hubs and hearts of communities in many towns, villages and cities across the UK will remain at risk.”

UKHospitality chief executive, Kate Nicholls, said: “An extension of the scheme is a sensible, positive, and timely move. The scheme has been a crucial lifeline for many businesses and employees. It has helped hospitality overcome the initial crisis, saved businesses and kept jobs open.

We will now be actively engaging with government about how the scheme will operate beyond July. The full 80% may need to be extended past July for some businesses in sectors like hospitality that will still operate at much reduced levels of trade, or not yet be able to open. Our businesses will need as much warning as possible if they are to be expected to plan ahead for eventual venue re-openings.

“Increased flexibility for hospitality will be equally vital. Hospitality businesses are not able to go from standstill to full capacity overnight. The additional flexibility being introduced to the scheme will allow our workers to return to work in a safer, graduated way — that is crucial to help the Government to safeguard public health, jobs and businesses.”