Revellers last night ignored government advice to stay at home and partied at pubs and clubs as they remained open, even after the chancellor promised they will be provided with billions of pounds to bail them out during the coronavirus pandemic.
As businesses reeled from the effect of consumers being told to stay at home and avoid social contact, Rishi Sunak unveiled a number of measures to keep businesses afloat and workers in jobs.
The windfall support offered by Mr Sunak didn’t stop some revellers in London, Liverpool, Manchester, Newcastle and Southampton heading out to bars and clubs on Tuesday night.
In one clip circulating on social media, partygoers clutching drinks can be heard singing ‘f*** coronavirus’ to the sound of Seven Nation Army, by alternative band The White Stripes.
And in another clip, people can be spotted clutching drinks and dancing, seemingly oblivious to the Prime Minister’s advice to the country on Monday urging people to stop ‘non-essential’ contact with others.
The chancellor’s intervention came after concerns the government’s advice for the public to no longer frequent pubs, clubs, restaurants and the theatre would decimate the hospitality industry.
As part of a package of measures, Mr Sunak announced he would give every single retail and entertainment venue – no matter what their size – one year off paying business rates. And he said the 700,000 smallest businesses, who do not pay rates, would get £10,000 in cash.
He guaranteed that contracts would be honoured by insurance companies. It had been suggested insurance firms might not compensate adequately protected pubs and restaurants for their losses.
Mr Sunak said the intervention would help not just pubs and restaurants but shops, music venues and theatres. Separately, Housing Secretary Robert Jenrick announced changes to planning rules to allow struggling restaurants and bars to operate as takeaways.
However, last night hospitality firms gave the measures a mixed welcome. The British Beer and Pub Association said the Chancellor’s announcements did not go far enough.
Revellers out on the streets in St Patrick’s Day in Leeds where pubs stayed open despite venues being closed down in Ireland itself
Boris Johnson, on the advice of his scientific advisers, has urged Britons to avoid all non-essential social contact. Pictured: Revellers in Leeds
In many European countries all bars and clubs have been shut, but many are still open in the UK for now because no full shutdown has been enforced
Bars and nightclubs in Liverpool were still busy despite Boris Johnson on Monday asking people to stay at home
A number of people were spotted in pubs and restaurants on the outskirts of London ignoring the recommendations from the government to stay at home
A number of people can be seen enjoying St Patrick’s Day festivities at a bar in Southampton, flouting the rules from the government
As businesses reeled from the effect of consumers being told to stay at home and avoid social contact Mr Sunak (left) unveiled a package of measures to keep businesses afloat
Chief executive Emma McClarkin said the Government must implement pub-specific measures within 24 hours to prevent ‘irreversible closures and job losses’.
‘We recognise as a sector that we are in unprecedented times and are prepared to play our part, but whilst we welcome the measures outlined today, they do not deal with the immediate cash flow and liquidity problems our industry faces,’ she said.
‘Without an urgent cash injection our sector will need to reduce its biggest cost, labour.’
Gerry Ford, the founder and chief executive of Caffe Nero, which has 800 stores in the UK and around 6,500 employees, said it is ‘a good start’ but ‘there needs to be more’. Kate Nicholls, chief executive of UK Hospitality. said: ‘The Chancellor has clearly been listening and these extra measures represent proper progress on last week’s Budget.
‘The focus now has to be on making sure that hospitality businesses can draw down the support loans and other funds while they still have businesses to operate, such are the levels of urgency for most businesses.
‘Cashflow is the key focus for companies endeavouring to survive. We only hope that this can be enough.’ The Chancellor said the grants would come on top of his plan to allow all business to access a £330billion Government-backed loan scheme.
The plans, announced in Downing Street yesterday, are designed to help businesses with their cash flow and fixed costs.
Mr Sunak said: ‘For those businesses which do have a policy that covers pandemics, the Government’s action is sufficient and will allow businesses to make an insurance claim against their policy. But many of those businesses don’t have insurance – so we will go further.’
But Nik Antona, national chairman of the Campaign for Real Ale, said that Mr Sunak ‘did not go far enough’.
‘Making loans to businesses with no money coming in and multiple overheads to meet through a period of no, or low trading, is simply kicking the can down the road,’ he said.
Mr Sunak also said Government advice to avoid pubs, clubs and theatres was sufficient for businesses to claim on their insurance when they have cover for pandemics.
A Downing Street spokesman said: ‘We are going to change planning permission so that pubs and restaurants will be able to turn into takeaways or delivery straight away.
A few people are seen outside a pub after UK government updated its coronavirus guidance yesterday and advised public social distancing
Streets are seen nearly empty after UK government updated its coronavirus guidance, but some people are still heading to pubs and restaurants
‘That will serve two purposes – it will (also) help to get food to people who might be staying at home.’
The spokesman said it would be a temporary measure that was ‘straightforward but will make a real difference’.
British Chambers of Commerce director general Dr Adam Marshall said: ‘These measures could be a lifeline for many businesses across the UK who are now experiencing wholesale disruption as a result of the pandemic.
‘The key to the success of these measures is whether they get cash to businesses on the front line, fast.
‘Companies need practical details, at great speed, for these interventions to have the desired impact, and to reassure firms across the UK.’
And Helen Dickinson, chief executive of the British Retail Consortium, congratulated the Chancellor ‘for listening carefully to the concerns of retailers’, saying he had delivered ‘a big, bold package of measures that will be a huge cashflow boost and will improve confidence for those affected’.
She added: ‘Business rates are a huge burden for retailers at the best of times. The business rates holiday, together with the announcement of a loan package, represent a vital shot in the arm for a sector facing enormous uncertainty.
‘We still need to see the details and make sure that retailers can access cash with the minimum of delay, but it is a welcome and necessary first step to protect jobs.
‘The Chancellor has said he will do whatever is necessary to support business and he has shown that he can respond to the changing need of retailers.
‘While these are the right decisions today, the Government may have to take further steps as the full effects of the situation unfold.’
An empty cafe in West End in London on Tuesday evening. It comes after Rishi Sunak unveiled a number of measures to keep businesses afloat and workers in jobs
Britons were yesterday told to avoid all non-essential travel and contact with others. Pictured: A Pret cafe at Waterloo station
High-profile figures including chefs Simon Rimmer, Aldo Zilli and Raymond Blanc had joined calls for the position to be made clear. Food critic Jay Rayner tweeted that Mr Johnson’s actions were ‘staggeringly reckless’.
Blanc claimed the hospitality industry is being ‘sacrificed’ and ‘battered’, accusing Mr Johnson of a lack of clear direction, while Rimmer said it will not take long for his sites to go out of business.
He tweeted: ‘We have no insurance claims to protect us as it’s not an enforced closure. It won’t take long for us to go out of business permanently.’
Blanc said businesses across the spectrum from ‘humble bistros’ to Michelin star establishments have been left ‘in… no man’s land’.
Rayner said: ‘Let me add my voice to the justifiably outraged clamour of those furious at the govt for insisting hospitality and entertainment industries shut down without legally mandating them to do so, meaning they can’t claim insurance. Staggeringly reckless.’
Another industry figure said a lack of clear financial help was effectively condemning the industry to death, while London Mayor Sadiq Khan urged the Government to follow the example of other countries by providing a clear financial aid package.
However, an ABI spokesman said: ‘Irrespective of whether or not the Government order closure of a business, the vast majority of firms won’t have purchased cover that will enable them to claim on their insurance to compensate for their business being closed by the Coronavirus.
‘Standard business interruption cover – the type the majority of businesses purchase – does not include forced closure by authorities.’
At Waterloo Station, shops including a Pret, Costa, McDonald’s and a Bagel Factory were serving queuing customers this morning.
Today, independent traders on London’s Southbank market told how they fear going to wall after the government urged everyone to stay at home.
Nina Mainente, manager of the Big Melt café, told MailOnline: ‘We will keep going for as long as we can but really I don’t think we will able to survive.
‘Already people are staying away. We launched a new menu the other day and it has made very little difference. There just aren’t enough customers. No one knows what is going to happen. We are just playing it by ear.’
A deserted West End in London, Britain, as a theatre and restaurant both sit empty on Tuesday evening
Fishmonger Jed Hall at Borough Market in London today with his produce during the coronavirus crisis
Cheesemonger Matthew Cookson at Borough Market in London today as the capital’s traders face declining footfall
An empty restaurant the West End in London on Tuesday. The chancellor’s funding package followed pressure on the government after restaurant takings were said to have plunged by up to 66 per cent last night, and high-profile figures including chefs Simon Rimmer, Aldo Zilli and Raymond Blanc called for action
Melodie Yahiaoui of the Alpine Deli stall at Borough Market in London amid the ongoing crisis caused by coronavirus
Sarra Darragi, owner of the Fitology Kitchen bar and restaurant, said: ‘We are all going to go bust. Today is going to be dire. We are all really worried.
‘We only manage to survive through the winter if we have a busy summer. And now that’s not going to happen.’
In Borough Market stallholders told how they were already experiencing a dramatic fall in trade.
Melodie Yahiaoui, of Alpine Deli cured meats stall, said: ‘There are no tourists and a lot of the offices around here have told their staff to work from home. There is not a lot of trade but we must keep calm and carry on.’
Fishmonger Jed Hall of Shellseekers, said: ‘It’s already very quiet and it’s going to get worse. The government said it will help small businesses but who knows how that’s going to work.’
Cheesemonger Matthew Cookson added: ‘The government has said people can still go out to buy food so let’s hope they keep coming.
‘There’s only me and two cheesemakers so there’s not a complicated supply chain. There is every reason why we will survive.’
Sara Farahat, general manager of the Prince of Teck pub in Earls Court, West London, stood behind the bar pulling a half pint of Guinness for herself today as two customers sat in a corner on what is usually one of the busiest days of the year.
She told MailOnline: ‘It’s St Patrick’s Day and just look around, there’s nobody in here; that tells you the state of our business at the moment. On average it’s down by at least 50 per cent not more. People are not coming out because they’re scared and who can blame them?
‘We’re also a very popular pub with football fans and because all games have been cancelled, we’ve lost that custom as well. This situation is a disaster and it’s only going to get worse. I’m not going to shut unless there’s a mandatory closure, which I hope happens because at least that way we could claim it on insurance.’
Ms Farahat, 26, added: ‘At the moment the entire hospitality industry has been hung out to dry by the government. Advising people not to go out to eat or drink but then not to help us is a terrible thing to do.’
Addressing the nation at 10 Downing Street, Mr Sunak said: ‘Taken together, on top of the unlimited lending capacity I have already announced, this is a package of tax cuts and grants, in this financial year, worth more than £20billion.’
The lockdown announced by Boris Johnson last night has sparked panic among businesses and fears millions could be made unemployed, while the self-employed and those in the ‘gig’ economy could also struggle to work.
Venue owners have vented fury at the PM for not formally ordering them to close, saying that means they cannot claim on insurance.
However Mr Sunak sought to allay that fear, saying: ‘Following the changed medical advice yesterday, there are concerns about the impact on pubs, clubs, theatres and other hospitality, leisure and retail venues.
‘Let me confirm that, for those businesses which do have a policy that covers pandemics, the government’s action is sufficient and will allow businesses to make an insurance claim against their policy.’
Paul Johnson, director of the Institute for Fiscal Studies think tank, said that it was likely the Chancellor would have to ‘come back with more’.
‘The biggest injection will come through guaranteed loans to businesses,;’ he said.
‘These will be welcome. It is worth noting though that as loans that need to be paid back, the long term value and viability of businesses taking up the loans will be reduced.
‘This could still leave some which would otherwise have been viable for the long run no longer viable without refinancing.
‘The long run costs of these loans for the public finances is highly uncertain.’
Shadow chancellor John McDonnell said the Government measures to support the economy through the coronavirus outbreak did not go far enough.
‘People are being laid off today and losing their incomes. We are disappointed that this package does not address their concerns,’ he said.
‘The further announcements laid out by the Chancellor lack the certainty required amidst growing public anxiety, and still do not go far enough in protecting workers, renters and those who are losing their jobs, or in fully supporting businesses at the scale necessary.
‘In particular, the Chancellor’s claim that new forms of employment support will be developed does not appreciate the urgency and gravity of the situation.
Even though many trains were quieter than usual this morning, the Central Line on the London Underground appeared as busy as ever
‘Workers and businesses need to know now that they will be supported, not in a few days’ time.’
The huge intervention comes after the US put forward its own $850billion plan to weather the storm ravaging the globe. offering to delay tax bills, bolster sick pay and supply emergency food.
Every American could also be handed a $1,000 cheque to help keep the economy moving.
Yesterday, the PM warned that the coronavirus was now in a phase of rapid spread across the UK, with London seeing a particular surge, and it was time to take radical action to stop the NHS being swamped.
But unlike New York – where all bars and restaurants have been compelled to close by 8pm local time tonight – Mr Johnson said he would rely on businesses and Britons to follow guidance.
The PM told a Downing Street press conference: ‘If necessary, you should ask for help from others for your daily necessities.
‘If that is not possible, you should do what you can to limit your social contact when you leave the house to get supplies.’
‘Now is the time for everyone to stop non-essential contact with others and stop all non-essential travel. We need people to start working from home where they possible can. You should avoid pubs, clubs, theatres and other such social venues.’
At the Eastern Star Chinese takeaway in Earls Court, owner Goh Han revealed that business had actually picked up following the initial outbreak of the coronavirus in China.
A largely empty carriage on a commuter train between Maidenhead and London’s Paddington Station this morning
He said: ‘At first, we were very badly hit, and business was down by around 90 per cent. We are still struggling but I’d say we were down by about 50 per cent now.
‘Chinese food as a whole has been very badly hit but it’s all down to ignorance. China is more than 5,000 miles away, we only use locally sourced ingredients so what happens in that country has got nothing to do with us.’
Mr Han, 60 added: ‘If the government wants a lockdown then they should do it properly because that way, at least we could get some financial assistance from our insurance. At the moment, there is only scare mongering and conflicting advice and that’s not helping us.’
Across the capital in Ealing, West London, Anna Ka, who runs the Sowo Café had already contacted her insurance company about business interruption payments because of the devastating impact coronavirus has had on her Polish eatery.
Ms Ka, 35, estimates that the number of customers has fallen by 50 per cent to 60 per cent.
She said: ‘The insurance company told me that I would not be entitled to anything because the government has not enforced a compulsory closure and also because coronavirus is not on their official list of viruses covered by our insurance.
‘The way we are being treated is disgraceful; the government has to do something. I employ 40 staff, we still have to pay them, maintain overheads and remain open. Our livelihoods are at stake and we are not being given the necessary help. It would be better for the entire hospitality industry if we were forced to close.’
For one savvy businessman however, coronavirus has been an unexpected marketing opportunity.
Aish Al Shokairy, who runs a vegan fast food kiosk in Ealing, West London, has been proclaiming to customers that the best way to boost their immune system to help fight off coronavirus is to sample his fare.
Mr Al Shokairy said: ‘As people walk by, I tell them about the benefits of vegan food because it’s the best thing you can eat at the moment if you want to protect yourself. Business is down but not that badly for me because I think people are looking for all kinds of ways to protect themselves from coronavirus.
A sparsely-filled carriage on an Underground train in west London this morning, after workers were advised not to come into their offices
‘We are in an awful situation, people are scared, and the government could be doing a lot more; that includes helping financially and promoting vegan food.’
In a special plea to the capital, Mr Johnson said people there were at the highest risk. ‘It looks as though London is now a few weeks ahead… it’s important that Londoners now pay special attention to what we are saying about avoiding all non-essential contact.’
The move came after ministers were warned the death toll from the virus could hit 260,000 unless dramatic measures were taken immediately.
But some businesses reacted angrily today and said that only being advised to close rather than being forced would mean they could not claim insurance.
Nik Antona, from the Campaign for Real Ale, said: ‘The lack of decisive instruction from the Government leaves pubs in a limbo where customers will abandon them, but they’ll be unable to claim insurance or other support to help them survive.
‘The Government has not defined how long people should stay away from pubs, but be in no doubt, within a short time many pubs and breweries will close and never reopen to serve their communities.’
Another industry source told MailOnline many insurance companies were already refusing to pay out to pubs, shops and cafes forced to close on the Continent and even if they did the money could come too late to avert mass closures.
However, industry group UK Hospitality said most insurance policies would not cover forced closure anyway.
‘A lot of businesses cannot claim anyway as some insurance providers are classing it a force majeure,’ a spokesman said.
Commuters on a London train – one wearing a mask – go about their daily business this morning amid calls to stay at home
‘The minority that do have cover will have too long to wait for any pay-out. By the time businesses see their money it could be weeks too late.
‘Even if the Government changes its position and forces venues to close, businesses could be long gone by the time claims are sorted. We need immediate help to make sure venues don’t go under. The Government must start subsiding wages, otherwise there will be widespread job losses.’
One dentist also contacted MailOnline to complain about the lack of advice coming from government for their sector.
‘There is lots of information and guidance for doctors but none of any substance for dentists,’ she said.
‘We are at the highest risk of all healthcare professionals to catch the virus due tour working in such close proximity to patients.
‘We are expected dot be open as usual but cannot buy any protective kit and have not received a promised pack from the NHS. There are a lot of anxious dental staff in UK at the moment.’
Businessmen, accountants and engineers were among the few passengers arriving at Waterloo station this morning in what is usually the rush hour.
They told how they would pick up laptops and attend meetings to coordinate working from home.
While key workers explained why they had to come into town.
Businessman Ivan Bell, 56, from Hastings, told MailOnline: ‘I run a packaging design company and I’ve come in to organize how we are going to work from home.
‘I have offices in London, New York and San Francisco.
‘We have already shut the office down in California and today I will be shutting down the offices in London and New York.’
Accountant Sharon Da Costa, 50, from north London, told MailOnline: ‘Today is my last day. Half of the office is already working from home and I’m just getting everything I need so I can do the same.’
Public Relations worker Emma Smith added: ‘I’ve come in for a meeting to work out how we are going to work from home.’
Marketing Executive Helen Jones, 51, from Staines, said: ‘This is my last day. I’m collecting my laptop so that I can work from home.
‘Some of us left the office before the government announcement urging people to stay at home last night.’
Structural engineer Richard Whitehead, 48, from Fleet, Hants, said: ‘We are working at the moment but I’m sure everything will soon grind to a halt.
‘We are already having meetings by conference call so that people can work from home.’
Hannah Milbourn, 23, from Public Health England, explained: ‘I can’t work from home. I’m part of the team who is organizing the response to the Coronavirus and issues the guidance on how best to tackle. It.’
A university lecturer told how he was obliged to come to work until the institution closed down.
He added: ‘As long as the students are coming I will be coming to work. We will put all lecturers online from tomorrow. But if the students are there I should be as well.’
University pay-roll manager Jenny Fitzgerald added: ‘I’m the person who makes sure everyone gets paid. So I have to come in.’
Cases of the coronavirus across the UK have now risen to 1,543, with 55 deaths, but there is likely to be many more as tests are being carried out on patients in hospital.
In France, shops, restaurants and all ‘non-indispensable’ businesses have been forced to shut.
French President Emmanuel Macron vowed last night in a television address that ‘no business will go bust’ because of social distancing rules in the country.
He told the French people they would have to stay home unless they were shopping for food or going to a pharmacy, going to absolutely essential work, or exercising alone.
In Germany, they announced bars, clubs, and museums will be closed to slow the spread.
Shadow chancellor John McDonnell tweeted: ‘We need unequivocal statement from Chancellor today that people’s incomes will be protected businesses will be fully supported to prevent any going out of business as result of the virus, and it has to be on a scale sufficient to meet this crisis. No small measures. Get it right.’
Are you a business owner who is worried about the shutdown? Contact [email protected]