MPs are calling on the Chancellor to increase support for businesses and workers facing Covid disruption this Christmas as cases continue to spike.

Hospitality businesses have reported an increase in cancellations amid concerns about the Omicron variant of the coronavirus, the MPs said.

A letter was sent to Chancellor Rishi Sunak by 14 Labour MPs from the North East.

Read more: More than 1,000 Omicron cases reported in North East

Durham City MP Mary Foy, who wrote the letter, said: "This should be the busiest time of the year for so many businesses.

"Pubs, restaurants, and many others should be bustling with festive trade but rising Omicron infections, combined with Government restrictions and guidance risk derailing the North East economy.

"Trade bodies and businesses are telling us that bookings are being cancelled in worrying numbers. For example, a pub in my constituency, the Station House, has told me that trade is down 40 per cent on the same week pre pandemic.

"The Conservatives simply cannot urge caution and introduce a lockdown by stealth while ignoring the damage inflicted on businesses and livelihoods if support is not forthcoming.

"If economic support measures do not follow public health messaging, the consequences are obvious. Businesses will go bust. People will be made redundant. Action must be taken today.

"The North East has levels of unemployment above the national average. Government inaction will hit our region particularly hard and make of a mockery of claims to 'level up'.”

The MPs are calling for the Government to raise sick pay so workers do not have to choose between self-isolating and losing earnings, to introduce a package of targeted economic support for sectors such as hospitality and entertainment, to ensure economic support changes are in step with public health guidance changes and to clearly communicate further changes to businesses and trade unions.

Mr Sunak came under fire last week following a trip to California. He returned earlier than planned on Thursday.

An HM Treasury spokesperson said the chancellor had met virtually with the CBI, FSB and BCC on Friday.

A spokesperson said yesterday: "The Chancellor spoke to business and industry leaders yesterday afternoon.

"We recognise how important the festive period is for so many businesses and the Government will continue to engage constructively on how it can best provide ongoing support to the businesses and sectors affected."

The letter in full

Dear Chancellor,

We are writing to you today, as it is clear that additional support measures are needed to protect workers and businesses in our constituencies here in the North East of England as Omicron case numbers increase this winter.

On 15th December, Professor Chris Whitty urged people to “think carefully” about their social contacts over the Christmas period, and to “prioritise” social interactions. This has led to a sudden increase in cancellations and reduction in footfall and potential trade for businesses. When businesses are hit financially, we know that job losses will soon follow.

The Government cannot urge caution and create an unofficial lockdown by stealth to protect public health yet provide no concrete support measures, at what should be the busiest time of the year for many businesses.

We face one of the toughest phases of the pandemic and yet as of today there are no plans to increase statutory sick pay which means that workers face the extraordinarily difficult decision of staying safe or paying bills. Nor is there any new package of support measures to assist businesses and protect jobs.

These concerns are being echoed by pubs, restaurants, theatres, and taxi firms in our constituencies across the North East. They are without support, with industry trade bodies and trade unions saying that they have not been consulted from the Government on these measures. Action must be taken, and support provided, otherwise there will be no other conclusion than the Government has been sitting on its hands rather than learning the lessons of the last two years.

Businesses feel ignored and abandoned. Meanwhile, workers are increasingly anxious that they won’t have a job next week. The government's inaction will hit our region hard and make of a mockery of claims to 'level up'. It is extraordinary that the Chancellor chose to spend four days in California rather than listen to businesses and workers here.

Therefore, we urge you as a matter of priority to take action and introduce the following measures:

  • To uprate sick pay so that workers do not have to choose between doing the right things and self-isolating and losing earnings during a cost-of-living crisis.
  • To introduce a package of targeted economic support to sectors such as hospitality and entertainment.
  • To ensure that when public health guidance changes, economic support changes in step.
  • That any further restrictions adopted as part of ‘Plan C’ are clearly communicated to business and trade unions, and to ensure that commensurate financial support is provided.

As Labour MPs we are proud to stand up for businesses and workers in the North East and we call on the Conservatives to listen and act to avoid real economic harm.

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