‘Omicron and Plan B are a hammer blow for the West End’s Christmas recovery’

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After the optimism of November that saw West End footfall rise above pre-pandemic levels for the first time, the steady drizzle of Covid restrictions and warnings has dampened any Christmas spirit, writes Jace Tyrell of New West End Company.

While the safety of the public remains our top priority and we fully support the re-introduction of mandatory face coverings, the hammer blow of a renewed work-from-home order means that the last full week of work before the Christmas break will inevitably not meet earlier optimistic projections.

On the back of subdued footfall from two winter storms and a tube strike, the recovery strategies of many retail and hospitality businesses are once again switching into survival mode.

All of us in the retail and leisure community recognise our responsibility for the safety of our customers and colleagues, but we also have a responsibility to support the economic wellbeing of our teams and the city centres in which we operate.

“Our strength doesn’t just maintain vibrant city centres; it underpins the economic foundations of the country. As a nation of shopkeepers, it is crucial that we keep the nation shopping”

The past year has seen businesses pledge more than £5bn to renew the appeal of the West End, with dozens of fresh new brands and experiences to open at iconic addresses in the coming years. This should be reinforced, not weakened, by government actions.

We are the largest private-sector employer in Britain. Our strength doesn’t just maintain vibrant city centres; it underpins the economic foundations of the country.

As a nation of shopkeepers, it is crucial that we keep the nation shopping. The government must free itself from other distractions and focus on how it can help match the pace of restrictions with vital business support.

After nearly two years of constantly interrupted trading and associated rising costs, many West End businesses have used up their cash reserves and need cash flow support.

This Christmas season was seen as crucial, with businesses committing time and money in a bid to make up for last year’s losses – vital investment that they likely now won’t be able to recoup.

We urge the government to look at temporary measures to ease pressure on cash flow, such as reducing or delaying VAT payments, business rates and wage bills. We must see a clear path out of Plan B and back to recovery.

The government should also look again at healing some of the self-inflicted wounds that continue to deter visitors, draining the West End of its vital lifeblood.

“Omicron’s effect on international traveller numbers also offers the Treasury a window of opportunity to reconsider its move to introduce VAT on purchases for overseas visitors”

The ongoing RMT strikes across the London Underground network are impacting businesses right across the capital and we urge the government to agree a long-term sustainable funding settlement with Transport for London.

Omicron’s effect on international traveller numbers also offers the Treasury a window of opportunity to reconsider its move to introduce VAT on purchases for overseas visitors, while improving the visitor visa system would make it even more likely that high spending international visitors would choose Britain over European competitors.

As yet, many of the tourists who would normally throng Bond Street and Mayfair have not attempted to return, and so won’t have realised that their usual Christmas shopping trip would now be 20% more expensive in London than in Paris or Milan.

With the opportunity next year’s Crossrail opening will bring to such travellers, speeding them from Heathrow to the West End in just 15 minutes, it would be a real shame not to use this to in turn turbocharge recovery.

Alongside a suspension of Sunday trading regulations in London’s International Centres, this would unlock a quarter of a billion pounds worth of sales each year without any cost to the taxpayer.

Public safety must, of course, remain our first concern, but we must consider the future economic security of our country and our people.

Now is not the time for half measures or further confusing restrictions; it is a time for clarity on the importance of rebuilding the strength of the UK’s retail sector for many future happy Christmases to come.