‘Still a long way from business as usual’: Businesses breathe sigh of relief as social distancing rule relaxed but call for ‘further financial support’

Pubs, restaurants, cinemas, hotels, museums and more to be allowed to reopen from 4 July

Businesses have expressed relief at the prime minister’s announcement on Tuesday that the coronavirus two-metre social distancing rule will be relaxed, but warn that skittishness among consumers to return to establishments may impact how quickly businesses can recover.

Boris Johnson said pubs, restaurants, cinemas and hotels can reopen in England from 4 July, when the two-metre rule will be slashed to one metre.

Venues will be allowed to reopen as long as they stick to strict guidelines to make them Covid-secure, which will be published this afternoon and are expected to include recommendations for physical barriers between tables and “guest registers” of customers in pubs and restaurants.

The announcement also covers museums, galleries, libraries, hairdressers, community centres and places of worship, among others – but the doors will stay closed for nightclubs, casinos, indoor gyms, swimming pools, bowling alleys, skating rinks, nail bars, spas, and tattoo and massage parlours.

Adam Marshall, director general of the British Chambers of Commerce, said in a statement: “These steps will enable more companies to reopen and will be cautiously welcomed in our business communities.

“While the relaxation of the two-metre rule will help more firms increase capacity, we are still a long way from business as usual. Broader efforts to boost business and consumer confidence will still be needed to help firms trade their way our of this crisis.”

Tourism trade association UKinbound said the announcement comes as a “huge relief to businesses across the tourism and hospitality industry”, whose revenue has been impacted significantly since the start of lockdown.

Joss Croft, CEO of UKinbound, said: “We’re pleased that the government has also listened to [the] industry and is on the verge of agreeing ‘air corridors’ with a number of countries – a step that signals that the UK’s tourism inbound industry is keen to welcome international tourists again.”

But she cautioned that while the new measures are welcome, businesses that “rely wholly or mostly on inbound tourism” have now gone through “the equivalent of three winters” and will require further financial support.

The new changes also put more responsibility on business directors to ensure “rigorous” measures are put in place to help businesses cope with the new normal.

“A quarter of our members have said that under current social distancing rules they are likely to operate at less than half capacity,” noted Edwin Morgan, director of policy at the Institute of Directors (IoD).

“For many, this simply isn’t sustainable, particularly with the furlough scheme set to wind down. This change isn’t a panacea and doesn’t mean safety can take a backseat.

“If anything, the onus is now even more on directors to ensure rigorous mitigating measures are in place. In some cases, this won’t be easy or cheap.

“With many firms already strapped for cash, the Treasury should consider supporting companies to make the necessary adjustments, particularly as some haven’t been able to access schemes so far,” he added.

Ralph Findlay, chief of pub chain Marston’s, which employs around 14,000 people, told the PA news agency that he expects it will reopen 80 to 85 per cent of its 1,400 pubs from 4 July.

He said: “I welcome the news. If two-metre distancing had stayed in place we would have only been able to reopen around 25 per cent of our pubs.

“This is a positive step, but I think there is also now a case for some kind of stimulus to help consumer spending. Personally, I feel a VAT cut, which has been touted, would work.”