Property and retail groups have reacted with dismay after Boris Johnson told workers to avoid coming to offices from next week in an attempt to curb rising cases of the omicron Covid-19 variant.
The prime minister last night said people should work from home if they can, starting next week, and face masks will be mandatory in most public indoor settings from Friday.
“While the picture may get better, we know the remorseless logic of exponential growth could lead to a big rise in hospitalisations and sadly in deaths,” he said.
“That is why it is the responsible and the proportionate thing to move to Plan B in England… so we slow the spread of the virus, buy ourselves the time to get more boosters into arms… and understand the answers to the key outstanding questions about omicron.”
Business groups said the new rules would hit city centre businesses the hardest, and called for a fresh wave of financial support measures to avoid job losses.
City of London Corporation policy chair, Catherine McGuinness, said: “Christmas has been cancelled for many City shops, restaurants, pubs and other businesses that rely on footfall from workers in nearby offices.
She urged businesses and workers to follow the new rules, but said the government should “set out a clear roadmap to normality early in the new year and base all decisions on data”.
Chris Vydra, CBRE’s executive director of City leasing, was more upbeat about the prospects for the Square Mile’s office market. “The latest restrictions appear to be a short term measure and we anticipate a minimal effect on long term market confidence”
“With space under offer in London at 4.5m sq ft at the end of November … the market should see a large quantum of space signing soon, despite the new policies.”
Plan B ‘worth it’ to avoid another lockdown
Meanwhile in the West End, Brian Bickell, chief executive of Shaftesbury, whose many retail and hospitality tenants face several weeks of uncertainty in the vital pre-Christmas trading period, said it was “disappointing” that the restrictions had been imposed.
However, he added that he had faith people would continue to spend time in the West End over the festive period. “If [Plan B] avoids a repeat of last year’s lockdowns, it will be worth it,” he added.
But Ros Morgan, chief executive of the Heart of London Business Alliance, which represents more than 600 West End businesses, said central London’s economy would be “disproportionately affected” due to its reliance on office workers and visitors. “Reintroducing restrictions, especially working from home, will cost businesses immensely,” she added.
Covid certification will also be mandatory for entry into nightclubs and large events from Wednesday, pending parliamentary approval. However, self-isolation for people who have been in contact with an omicron case has been scrapped and will be replaced by a daily testing regime.
Ruby McGregor-Smith, president of the British Chambers of Commerce, said: “The government must once again stand shoulder to shoulder with business and provide a package of support to ensure that we get through a challenging winter without serious damage to our economic recovery.”
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