What impact has Omicron had on London’s economy this winter?

The impact of the Omicron variant on London’s economy this winter has been very severe. December [2021] was a huge disappointment for London’s hospitality, retail, culture, and leisure businesses, with takings down significantly in the weeks leading up to Christmas compared to pre-pandemic levels. The number of people travelling into central London fell following the implementation of the Government’s Plan B guidance to work from home. Central London’s shopping and theatre districts like the West End saw a big drop in footfall compared to pre-pandemic levels, which continued into the New Year.

Today we have published updated tourism forecasts showing that in the final quarter of last year, domestic and international visitor nights to London were down 40% compared to the equivalent quarter in 2019 and spend related to those down by 60%. The latest survey by the London Chamber of Commerce and Industry shows that between the third and fourth quarters of 2021 there was a worsening in London’s business confidence in the UK and the London economies and in their own companies’ prospects for the next 12 months. December takings are crucial for London’s shops, restaurants, theatres, nightclubs, and pubs, which rely on the income to keep them afloat in the leaner months that follow. After an extremely challenging and volatile 20 months, the loss of anticipated income will undoubtedly and dramatically impact businesses’ ability and confidence in the first months of 2022.

With COVID infection rates and hospital admissions having peaked in London, I hope the Government’s upcoming review of Plan B measures will make the removal of some restrictions possible and will make a difference on the ground. Either way, our world-renowned hospitality, retail, culture, and leisure businesses still need further help. The package of measures announced by the Chancellor on 21 December [2021] did not provide the level of support required, which was disappointing after members of the London COVID Business Forum and I set out what was required to the Government following our last meeting. I continue to urge the Government to provide full business rates relief, an extension of the Value added tax (VAT) relief scheme, and a more sustainable increase in direct grant funding to help London’s businesses this winter.

Thank you, Mr Mayor. Many Londoners receive low levels of sick pay, which leads to them, sadly, having to go to work and then spreading the virus. Your Good Work Standard supports employers in improving employment practice.

Do you think that paying sick pay at the London Living Wage rate should be a condition of accreditation to the Good Work Standard and, if not, could it be?

The Good Work Standard is leading to more and more employers being exemplars. Employers should, where they can, enhance their sick leave conditions.

However, the real issue is not those employers who can enhance them. The real issue is the Government changing the levels of statutory sick pay. It currently exists at £96.35, which simply is not enough. If the Government was to increase statutory sick pay to the London Living Wage level, it would mean that those people who should be at home would be at home, and that is why it is important for them to do so. We are going to continue to work with the Good Work Standard employers to see what they can do, but also if they can speak to other employers, who are not quite doing that, to see how they did it so they can share best practice.

Thank you, Mr Mayor.