Omicron Brings New Round of Foreboding for British Businesses

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For months, businesses across Britain have been desperately trying to maneuver around supply chain disruptions, labor shortages and rising costs as they emerged from various stages of lockdown.

Restaurants at London's Leadenhall Market on Sept. 8, 2020.

Offices reopened, which filled up commuter buses and trains; restaurants and pubs advertised to host holiday parties; and lines grew longer at city center coffee shops. “Unless you go to a full or partial lockdown, the effect of the measures themselves will be rather small,” said Paul Mortimer-Lee, deputy director of the National Institute of Economic and Social Research in London. “What will be hurting the economy is individuals’ responses.” People are likely to take more precautions to protect themselves from the virus, especially by socializing less.

Her organization will encourage workers and businesses to follow the new rules but said the government needed to lay out a road map for lifting the restrictions again in the new year, McGuinness said. Even before the latest measures, hotels were seeing about one-fifth of their corporate bookings canceled, according to UKHospitality, an industry lobby group, after the government required travelers into Britain to take a COVID test within two days of arriving and isolate until receiving the results. Christmas bookings were not as strong as they traditionally are for hospitality businesses in a quarter that usually brings in about 40% of the industry’s annual revenue.

 

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