Britain’s economic misery deepened today as three huge firms unveiled job losses that bring the number to more than 150,000.
Boots, John Lewis and Burger King are axing staff due to coronavirus.
Labour’s Lucy Powell warned Rishi Sunak ’s meal deal recovery plan was “not up to the task” of saving thousands of high street jobs.
Mr Sunak pledged to put “jobs, jobs, jobs” at the heart of his economic recovery, but the reality of the task was laid bare with a high street bloodbath.
Just a day after the Chancellor’s mini-Budget promised discount meals for people to get Britain spending, three major firms unleashed more misery and uncertainty by announcing closures to stores and outlets.
Boots, John Lewis and Burger King joined the growing wave of businesses axing thousands of jobs.
It means the number of posts lost in the wake of the coronavirus crisis has reached more than 150,000.
And there were fears the five-week wait for Universal Credit will plunge thousands into poverty if they are given the boot from work.
Experts also believe the latest cuts are just the tip of the iceberg as the furlough scheme comes to an end.
Shadow Minister for Business and Consumers Lucy Powell said: “Britain’s high streets are facing a horror show.”
And she branded Mr Sunak’s pledge to offer cheap meals out during certain days in August a drop in the ocean, as more and more people are left with no jobs and others suffer pay cuts.
Ms Powell added: “A 13-day meal deal is clearly not up to the task of saving tens of thousands of jobs on the high street and in hospitality.
“The Chancellor’s announcements were a missed opportunity to provide real help to save jobs now through a fightback fund for high streets and hospitality and flexible furlough for sectors still in distress.”
Boots unveiled more than 4,000 job cuts to offset the “significant impact” of Covid-19.
The cull, around 7% of its workforce, includes redundancies at its Nottingham HQ, stores and opticians chain, where it is closing 48 branches.
The retailer said sales dived 48% over the past three months, despite branches being allowed to open, while optician sales crashed 72%.
Boots UK managing director Sebastian James said: “The proposals are decisive actions to allow Boots to continue its vital role as part of the UK health system, and ensure profitable long-term growth.”
But shopworkers’ union Usdaw national officer Daniel Adams added: “After everything Boots workers have given to their communities and their country as key workers over the past few months, this is bitterly disappointing news and a further blow to the high street.”
Burger King UK chief executive Alasdair Murdoch warned the company could permanently close up to 10% of its stores.
Only about 370 of the chain’s 530 UK outlets have reopened since lockdown.
Mr Murdoch said: “We don’t want to lose any jobs. We try very hard not to, but one’s got to assume somewhere between 5% and 10% of the restaurants might not be able to survive.”
John Lewis confirmed eight shops shut since the start of the coronavirus lockdown would not reopen.
They include its flagship Grand Central store in Birmingham, which only opened in 2015, along with another full-size branch in Watford. The worker-owned business has entered consultation with 1,300 staff.
Aircraft engine maker Rolls-Royce said more than 3,000 British workers had applied for redundancy, with around 2,000 set to go.
Nearly 17,000 potential job losses have been announced so far this month alone, on top of 75,000 last month.
Mr Sunak had tried to prevent a wave of redundancies by promising firms a £1,000 bonus for keeping furloughed staff in jobs until the end of January. But clearly to no avail.
The Chancellor, who today visited the Worcester Bosch plant, has also sparked fears of tax hikes and spending cuts to come later after his pandemic recovery fund hit £190billion.
That would scupper Boris Johnson ’s general election pledge to end austerity and repay the trust of voters in Labour’s once loyal “red wall” of northern seats who switched to the Tories. Among those hardest hit by job losses have been the lower paid, often with little savings if any to fall back on.
That risks millions more people signing-up for Universal Credit.
And a damning report by The National Audit Office today finds the five-week wait for UC payment after losing a job “can exacerbate claimants’ debt”.
TUC general secretary Frances O’Grady said: “The Government must end the five-week wait now. It is causing needless stress and hardship.”
The jobs at tisk
Accenture.....................................900
Airbus............................................ 1,700
Arcadia...........................................500
British Airways......................12,000
Beales ........................................... 1,052
Bentley ........................................ 1,000
Boots ..............................................4,000
Burger King...............................1,600
Casual Dining Group (Bella Italia, Caferouge and Las Iguanas).... 1,900
DHL at Jaguar Land Rover.....2,200
Easyjet.........................................4,500
Go Outdoors..............................2,400
Harrods .........................................700
Harveys........................................1,540
Ovo Energy .................................2,600
Mothercare ...............................2,500
Oasis Warehouse....................1,800
P&O Ferries .................................1,100
Pret a Manger ......................... 1,330
Ryanair .........................................3,000
Ssp Group (Upper Crust, Caffe Ritazza).................................5,000
TM Lewin.........................................600
Tui ....................................................... 8,000
Victoria’s Secret.....................800 G
General Electric ......................769
