Exeter businesses expect downturn from Omicron

Fear for greater restrictions in January

Nearly half of businesses in the Exeter area think the latest covid restrictions will have a negative impact on them, according to a survey by the city's leading business group.

Exeter Chamber's research shortly after the imposition of the government's Plan B reveals a high level of concern among its members. 

Forty-six per cent of respondents said the new measures would impact their business negatively, with three quarters (77 per cent) thinking more restrictions are on the way in the new year.

Its led Exeter Chamber to call for immediate financial support for businesses. 
 
This week, chancellor of the exchequer Rishi Sunak issued a stark warning to Department of Health officials over the multibillion-pound cost of regular booster rollouts.

However the chancellor is more concerned about spending, and hasn't said much at all about support for businesses, especially in hospitality and tourism, expected to be hit by a downturn in trade as people are increasingly encouraged not to limit their interactions with other.

On Monday, people were advised to work from home if they can.  That leads to fewer people in centres such as Exeter, and fewer people using cafes, bars and restaurants, or popping out to shop.

The hospitality sector has seen a ripple of effect of cancellations in recent weeks, with concerns of the Omicron variant spreading more easily amongst the unvaccinated and those who have yet to receive their booster. 
 
Clodagh Murphy chair of Exeter Chamber says: “The government must act now to avoid further business closures. We have already been made aware of many cancellations of Christmas parties and celebrations amongst our hospitality industry at what is a crucial time of year for them in recouping lost revenue of the past 18 months.

"The messaging from the government is unclear – work from home where you can but continue your festive celebrations. A confusing request for many. What the business community needs is absolute clarity and consistency of messaging as well as a financial package to enable a safe and stable economy.” 

Clodagh Murphy is chair of Exeter Chamber

 Jemma Mitchell owner for Rendezvous Wine Bar said: “Our 60-cover wine bar and restaurant, has had bookings through December for Christmas groups, and we have seen literally 200 covers cancel which is a phenomenal proportion, and this doesn’t include the normal small table bookings, which are equally chopping and changing with every phone call and email.

"It’s a real roller-coaster ride and quite exhausting to plan, order and prep for, especially for the kitchen who are working flat out and prepping food, only to find a group cancels or halves in numbers for a booking in the following day or two. The staff are also being hugely affected as they are having shifts cancelled when groups drop as we won't need so many people to work when it’s not going to as busy as predicted, so they are losing out on wages, and tips as a result.” 
 
Exeter Chamber's poll also shows that nearly half of business owners (47 per cent) are unclear about what the government is asking them to do.

In light of these responses, the Chamber is not only calling for clarity of messaging, but in the event that the Omicron variant forces the government into closing parts of the economy that a mini furlough scheme is put into place and financial support for business owners is actioned immediately.