City Pub Group could cut its workforce by 250 when furlough scheme ends after being hit by Covid lockdown rules

A quarter of jobs are at risk at City Pub Group when the Government's furlough scheme comes to an end next moth after being impacted by coronavirus restrictions.

Clive Watson, chairman of the pub group, said 'at least 25 per cent' of the workforce could be cut once the job retention scheme comes to an end on October 31. 

The company, which runs 48 pubs, primarily in London and the south of England, currently had around 1,000 employees prior to the pandemic.

City Pub Group has reopened 37 sites in its pub estate but said it expects jobs to be hit at its remaining 11 sites  by the end of next month.

Clive Watson , chairman of City Pub Group, said 'at least 25 per cent' of his workforce could be cut once the Government's furlough scheme comes to an end on October 31

Mr Watson said: 'With the sites that are currently closed, jobs will go and we are now seeing how current restrictions will impact others.

'We are looking at this affecting at least 25% of our workforce we have to say, although this could be more.'

The company has now started a consultation which could see staff agree to reduced hours, he added.

Mr Watson said he expects there to be a jobs 'bloodbath' among pubs and hospitality firms once the job retention scheme comes to an end on October 31.

He said the replacement job support scheme, which was announced by the Chancellor last week, is 'not suitable as a mechanism to save jobs in the pub trade'.

Mr Watson said the business is 'fairly well protected' from the impact of the 10pm curfew and believes that people will change their habits as a result.

'I think we are already seeing some signs that people are coming to pubs earlier and obviously that's something we're keen to see,' he said.

'The desire to go to the pub is definitely still there but I think we'll see more shifts in people's habits as restrictions continue to change.

'I think Christmas will be tough without Christmas parties and big groups, but hopefully we might also not see the same fall in January as people usually detox. We'll just have to see how things pan out.' 

The pub group runs 48 pubs, primarily in London and the south of England. Pictured: The Hoste Arms in Burnham Market, Norfolk

The company currently had around 1,000 employees prior to the pandemic but may have to reduce its workforce following the coronavirus restrictions. Pictured: The Cat & Mutton pub in Broadway Market, Hackney

City Pub Group has reopened 37 sites in its pub estate but job cuts could not hit its remaining 11 sites. Pictured: The London Road Brew House in Bedford Place, Southampton

The comments came as the group hailed 'strong' revenues since reopening, with like-for-like sales at around 80 per cent of previous levels.

It revealed that revenues tumbled to £12.1 million for the six months to June 28, from £27.1 million in the same period last year.

Shares in the company moved 7.6 per cent higher to 61.9p after early trading on Wednesday. 

Last week the Chancellor Rishi Sunak unveiled the Job Support Scheme which would replace the furlough, or Job Retention Scheme .

Under the new scheme, employees' wages receive a maximum subsidy of 22 per cent from the Treasury, depending on how many hours they work. 

But firms must pick up the additional 55 per cent, compared to 20 per cent under furlough.  

The scheme will start in November and run for six months.

It came after the Prime Minister set out a raft of measures designed to clampdown on Covid-19, including imposing a 10pm curfew on all pubs, bars and restaurants in England. 

The 10pm curfew on the hospitality sector sparked an immediate industry backlash, with the UKHospitality group calling it 'another crushing blow'.

There were also fears the move could have unintended consequences amid warnings of a potential 'surge of unregulated events and house parties'.