Asian businesses welcome plan out of lockdown

by LAUREN CODLING

BUSINESS leaders have called the UK government’s roadmap to end lockdown “a light at the end of the tunnel”, as prime minister Boris Johnson estimated most coronavirus restrictions could be lifted by  June.

Unveiling a plan to end Covid safety measures for England on Monday (22), Johnson stressed caution to ensure there were no reversals on what he said was a “one-way road to freedom”. Starting in two weeks with the reopening of schools, the proposals comprise four stages, with at least five weeks in between each one. The final step, when most restrictions will be lifted, will not start until June 21 at the earliest, meaning some businesses will remain closed until the summer.

“We cannot persist indefinitely with restrictions that debilitate our economy, our physical and mental well-being, and the life chances of our children,” the prime minister said. “And that is why it is so crucial this roadmap is cautious, but also irreversible. We’re setting out on, what I hope and believe, is a one-way road to freedom.”

Health secretary Matt Hancock also stressed that safety was the priority in the weeks and months ahead. “We're all absolutely determined to come out of this as fast as safely possible, but no faster,” Hancock said.

Under the plans, the non-essential retail sector and outdoor hospitality could reopen as soon as April 12. Pubs and restaurants may be able to open indoor areas, and hotels could welcome guests too, though not before May 17.

'Step in the right direction'

Several business leaders expressed optimism about the proposals. Lord Karan Bilimoria, the president of the Confederation of British Industry (CBI), said the roadmap “offers hope that the country can get back to business in the coming months”. The peer, also the founding chairman of the UK India Business Council, added that it offered a “pragmatic and safe route” out of lockdown.

“Business backs the step-by-step approach to re-opening and putting an end to damaging stop-start restrictions,” Lord Bilimoria told Eastern Eye on Monday. “We now need to turn this roadmap into genuine economic momentum.”

CBI president Lord Karan Bilimoria said the roadmap “offered hope" for the future

Noting the upcoming budget announcement next Wednesday (3), the businessman added that “extending business support in parallel to restrictions will give firms a bridge to the other side”. “This is particularly needed for sectors who will have to wait for up to three months to re-open and have an anxious 10 days ahead before the budget,” he said.

Businesses were committed to working with the government to refresh practical guidance for firms and to fast-track the roll-out of tests in workplaces in the weeks ahead, the British-Indian entrepreneur added.

He said: “Businesses will play their full part with public health in mind and the confidence to kickstart a with civil discourse.”

Kamal Pankhania, group managing director and chief executive of property developer Westcombe Group, agreed the latest update was “welcome news” for society and the economy. He told Eastern Eye the outcome of the new rules would help significantly, “especially for the damaged hospitality sector which will take a long time to recover”.

However, Pankhania warned that vigilance was required in the coming months. “While the news is positive, I would still tread carefully as we are not out of the woods,” he said. “I would advise the prime minister to monitor this very cautiously and to not rule out a further lockdown if we see any sign of the disease spreading again.”

Westcombe Group's Kamal Pankhania welcomed the news, although he warned vigilance was required in the coming months

Neal Khanna, the proprietor of Asian catering business The Clay Oven and a number of hotels across the UK, said the government announcement came as a “welcome surprise” for the industry. It offered “hope and light at the end of the tunnel” for business owners, he added. “Whether this reopening plan is irreversible only time will tell, but certainly it’s a step in the right direction and a much-needed boost,” he told Eastern Eye. “Having target dates will help up plan for the future with our customers, and hopefully create confidence for customers to commit to booking future events.”

Meanwhile, the travel sector will have to wait until a global travel taskforce presents its report on the reopening of the sector on April 12. The government will then decide about removing restrictions on international travel, which is not expected to take place until May 17 at the earliest.

Jaymin Borkhatria is the chief commercial officer for UK travel agency Southall Travel. Admitting that the pandemic had been a “nightmare” for the industry, Borkhatria said the announcement was “very welcome”. The business had already seen a surge in bookings since the update on Monday, he revealed.

“At least we will see the light at the end of the dark tunnel,” Borkhatria told Eastern Eye. “We are optimistic this will help the travel industry hugely – especially when other countries also open up for flights and holidays. The surge in bookings will be phenomenal.”

'Worried about our future'

However, some business owners voiced uncertainties for the months ahead. Al Malik is the chair of Oxsana, a hospitality association representing 300 Asian hotel and restaurant owners, and the owner of Remarkable Hotels UK. Although the roadmap was a “sign of hope” to many, the hotelier admitted some owners were worried about their business’ survival over the next few weeks.

“This could be the straw that breaks the camel’s back,” Malik told Eastern Eye. “People don’t have the liquidity to keep going for the next two to three months.”

Despite being closed, hotel owners still have outgoing payments – including national insurance and pensions for staff and additional bills such as for gas and electricity. “There is no income to contribute to these fees,” Malik noted. “The government really needs to consider how they will support us. The next seven-eight weeks are critical.”

Describing the past 12 months as “horrific”, Malik admitted to struggling with his mental health during the pandemic. “I’ve had countless sleepless nights,” he said. “I seriously thought I was going to go bust.”

Cyrus Todiwala, chef and founder of London-based restaurant Café Spice Namasté, said the roadmap provided only partial good news for eateries. Those with outdoor seating space would benefit most, he said. “Most places such as high street venues, particularly in London, will not see any benefit,” he told Eastern Eye.

Chef and restaurant owner Cyrus Todiwala admitted losing up to 80 per cent of his trade during the coronavirus crisis

Todiwala said though many businesses may see a “brief reprieve”, he expressed sadness that the hospitality industry would have to await for the wider opening of restrictions before they could begin to operate as normal. In an interview with Eastern Eye last year, Todiwala admitted losing up to 80 per cent of his trade during the coronavirus crisis and voiced concerns on the future of his family-run business.

Despite his concerns, however, he was positive about the months ahead. “For sure, (the roadmap) is a move towards a brighter future,” he said.

Dawood Pervez, managing director of Bestway Wholesale, the UK’s largest independent cash and carry, said the next three to six months would be essential to independent retailers. Bestway would look to reassure customers that they would support them every step of the way, Pervez said.

Mike Cherry, the national chairman of the Federation of Small Businesses said it was important for the plans to protect against a fourth Covid wave and lockdown, “which would be devastating for the 250,000 firms that fear closure this year”.

With almost 130,000 fatalities, Britain has suffered the world’s fifth-highest death toll from the pandemic and its economy has seen its biggest fall in more than 300 years.

In two months, the UK has provided an initial vaccine dose to more than a quarter of the population, the fastest rollout of any major nation.

(With agencies)