Labour has warned of a “triple-whammy cash crisis” in the run-up to Christmas as analysis has found that non-food retail, hospitality, leisure and cultural businesses have seen a £61bn hit to their takings compared to 2019.
Lucy Powell MP has highlighted that businesses over the festive period face “tumbling turnover, plummeting profits and crumbling confidence” – caused by government failure to effectively manage the pandemic.
She said: “The coronavirus crunch has wiped billions of pounds off company balance sheets and with the Chancellor’s sleight of hand on business grants, many firms are now facing a cash crisis that has his name all over it.
“The run-up to Christmas is an absolutely critical time of year for so many businesses on our high streets facing a triple whammy of tumbling turnover, plummeting profits, and crumbling confidence as a result of the government’s failure to tackle the coronavirus.”
With House of Commons Library data showing that UK businesses in sectors such as hospitality and leisure have seen turnover fall by up to half compared to 2019, Labour has warned that billions of pounds in turnover are at stake this Christmas.