Sector sales plummet in high alert areas: Pubs, bars and restaurants in areas that are in the upper tiers of the government’s new covid alert system have suffered an immediate drop in sales, CGA’s latest data has showed. Businesses in the “very high” alert tier in England – where pubs and bars can only remain open if they serve substantial meals, and people cannot meet with anyone outside their household – saw their daily sales drop between 60% and 62% year-on-year from last Thursday to Saturday (15 to 17 October). This represents a 26% fall on sales compared with the previous Saturday, driven primarily by drinks sales, which fell 43% on the week before. While restrictions are slightly looser in the “high” tier, businesses in these areas also saw a significant drop in trading, with sales down between 46% and 54% from Thursday to Saturday. Licensed premises in the first “medium” tier fared better after the introduction of the new system, though their sales were still down between 22% and 28% year-on-year between Thursday and Saturday. CGA’s data indicated a particularly steep drop in drinks sales in tier three areas, where alcohol can only be served with substantial meals. Businesses in these areas saw drinks sales fall by 73% year-on-year last Saturday, compared with a 59% fall in second-tier regions and a 31% drop in all other places. Having already been impacted by the 10pm curfew, the spirits category has seen the sharpest fall in sales, which were down by 83% in “very high” areas. “These figures lay bare the instant and seismic impact of the new tiered system on hospitality,” said CGA group chief executive Phil Tate. “The loss of almost two thirds of daily sales in top-tier areas like Liverpool is catastrophic for local operators, and with Greater Manchester now set to join them there is a lot more hardship to come. It is also alarming to see a sharp drop-off in second-tier areas, where businesses are battling relentless challenges without financial support. Urgent government help is needed if businesses and jobs are to be sustained through this rapid downturn in sales.”

Treasury hints at support for tier two businesses: Government ministers have prompted speculation the Chancellor Rishi Sunak could soon announce a bailout for businesses that are “open in name only” due to tier two coronavirus rules. The government has so far pledged extra financial support for pubs, bars and restaurants that are forced to close in tier three areas. There are growing concerns about businesses in tier two parts of the country, which are not required to shut but have suffered a massive drop in customers due to restrictions on household mixing. The Daily Mail reports Treasury minister Jesse Norman told the House of Commons the government is “acutely aware of the financial costs on those businesses” in tier two. And, in a potential hint there may be more help to come, he said the current programme of support for businesses is “evolving and comprehensive”. The issue was raised in the Commons yesterday by Labour shadow Treasury minister Abena Oppong-Asare. Oppong-Asare told MPs: “In regions facing tier three restrictions, many businesses have been forced to close. In tier two regions, many businesses – especially in hospitality – are open in name only, running up all the costs without the customers. What does the government have to say to those businesses that, realistically, cannot operate and are not legally required to close?” Norman replied: “The answer to the question [Ms Oppong-Asare] raises is, of course, that we are acutely aware of the financial costs on those businesses, as we are on businesses that have been forced to close. That is why we have put in place an evolving and comprehensive programme of support for business.” UKHospitality chief executive Kate Nicholls said the association was continuing to meet ministers on an almost daily basis to convey the impact of the restrictions on jobs and livelihoods and to press for additional support.