The government must step in to help businesses affected by Omicron – it’s the right thing to do

For some months now, the prime minister has been going around doing his best impression of a jolly Santa Claus, and promising that this Christmas will be “substantially better” than last year. It doesn’t feel that way for those who try to make a living in the travel, hospitality and entertainment sectors. This extends even to those who, by appointment, provide the goodies for the Queen’s annual lunch for her extended family at Windsor, which almost qualifies as a large gathering in an indoor venue, according to the guidelines. Rather than hosting a super-spreader event, Her Majesty has wisely once again shown the nation a lead. It is, though, not much help for the average restaurateur.

The arrival of the Omicron variant, some frightening and confusing messaging from the authorities, and a public inclined to the precautionary principle, have conspired to destroy business prospects for the second year running. It is a cruel blow. Whether this counts as lockdown by stealth or not, the government has to provide support once again for businesses directly affected by official ministerial advice. It is morally, economically and probably legally the right thing to do.

By coincidence, the Bank of England chose this very moment to deliver its own unhappy Christmas gift – a small but symbolically important rise in interest rates to 0.25 per cent, understandably with inflation showing no signs of abating.

Many hostelries are already suffering from staff going sick with Covid or isolating, and they have experienced the same rises in food and energy costs as their customers have. The brutal fact is that many normally viable theatres, hotels, cinemas, bars, pubs and eateries will close their doors for the last time this “festive season”. That, in turn, will further erode consumer and business confidence, and the economy will slip back into recession even as prices are still rising at their fastest pace in decades. It is only fair to add that Brexit has not been helpful in solving labour shortages and fractures in cross-continental supply lines.

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Inexplicably, the Home Office continues to restrict work visas for key groups of workers – a clear case of official policy damaging profits.

Yet the chancellor is conspicuous by his absence; missing presumed having a good time in California. There are disturbing rumours that the Treasury is refusing to supply the aid that these hard-pressed sectors of the economy need. They may have forgotten, strangely, how successful the furlough and loan schemes were during the earlier part of the pandemic.

It may well be that Rishi Sunak is watching and waiting until some firmer evidence on Omicron comes to light after Christmas before launching new initiatives and extending VAT and business rates relief. By then, though, it will be too late for some.