Most coronavirus rules will remain in place in England for another four weeks after the planned 21 June unlocking.
The prime minister has announced the expected delay until 19 July to lift legal restrictions on social contact and for capacity limits for sports, pubs and cinemas to remain. Nightclubs will stay closed.
We are now approaching a cliff edge, with government support for business ending or beginning to taper off” – Dr Roger Barker, policy director, Institute of Directors
The delay, which was linked to the need to fully vaccinate two-thirds of the adult population, could be the cue for a sizeable Conservative backbench rebellion when the Commons votes on it in the near future.
The 21 June date was always a “not before” date the prime minister said, adding that 19 July was a “terminus date”.
Originally the plan was for the mixing of households to be permissible after 21 June; but this would have greatly accelerated the spread of the Delta variant, said the government’s chief scientific and medical advisers Patrick Vallance and Chris Whitty.
By delaying the lifting of restrictions, they added, the peak in the spread of the Delta variant would be reduced by between 30-50%. But there would still be an increase in cases and hospitalisations.
There was no mention of extensions of business and job support measures in the announcement.
The Institute of Directors has warned that the effect on businesses could be significant, referring to a cliff edge of costs.
Dr Roger Barker, the IoD’s director of policy, said: “Clearly this is a blow for many businesses, particularly those in the retail and hospitality sectors.
“We are now approaching a cliff edge, with government support for business ending or beginning to taper off. It is vital that this support is pushed out commensurately with the lockdown extension. Economic support and public health measures must be aligned.”
He listed the additional costs businesses faced at the end of June, drawing attention to quarterly rent due on 23 June and the need for businesses to start contributing 10% towards furlough costs from 1 July.
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Additionally, on 1 July, 100% business rates relief tapers off to 67% business rates relief.
Health minister Edward Argar told the BBC earlier that there had been an increase in cases of the Delta variant of the coronavirus and that hospitalisations were rising. Urgent research into the the effectiveness of vaccines as a defence for the variant and the link between infections and hospitalisations was under way, he said.
Most severe cases were among unvaccinated people or those who had only one dose, he added.
Ben Willmott, head of public policy at the CIPD, said employers could use the extra month to finalise and consult workers over hybrid work arrangements. He said: “This announcement has been expected – although it will still be disappointing for employers in certain sectors, particularly for example, those in hospitality and tourism. Employers who are affected can continue to make full use of the furlough scheme to protect jobs and ensure they are ready to resume operations when restrictions are finally lifted.
“Employers can also use this extra time by engaging with staff to consider the best way of optimising future home and hybrid working arrangements for both individuals and the business, as well as enhancing other forms of flexible working.”
Pubs, bars and restaurants representative body UK Hospitality joined calls for more government support and warned of the impact on the sector in the summer months ahead.
Employers need digital right to work checks to remain to help them place staff quickly now there is a delay to fully lifting Covid restrictions” – Neil Carberry, Recruitment & Employment Confederation
The organisation’s head, Kate Nicholls, said: “Even now, with partial reopening, sector sales remain down 42% and 300,000 jobs remain protected by furlough.
“A one-month delay to restrictions lifting would cost the sector around £3bn in sales – but would also have a knock-on impact on bookings throughout the summer and into the autumn.”
Neil Carberry, chief executive of the Recruitment & Employment Confederation called for the government to extend targeted support measures, and added that digital right to work checks needed to be made permanent: “Our data shows recruiters reporting massive labour shortages across the economy right now, and any delays to hiring could have serious consequences. Employers need digital right to work checks to remain to help them place staff quickly now there is a delay to fully lifting Covid restrictions – in line with public health guidance.
“We’d urge government to use the time to consult on making digital checks a permanent feature of the labour market. Our experience is that they have raised levels of compliance and given UK nationals greater opportunities to get into work quickly.”
Scotland is due to move to level zero Covid restrictions on 28 June – meaning bigger groups can gather in cafes, pubs and restaurants, although they will still have to observe social distancing.
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Limits on indoor gatherings in Northern Ireland are scheduled to be relaxed on 21 June and the current rules in Wales will be reviewed on 25 June.
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