Britain's pandemic-weary hospitality businesses have taken a fresh hit from soaring coronavirus cases fueled by the Omicron variant, as anxious customers curtail socialising and cancel bookings over the Christmas period.
Pubs, restaurants and bars -- already struggling after nearly two years of reduced revenues due to the pandemic -- now face lost income at typically the busiest and most valuable time of the year.
"Normally this is the biggest week of the year (and) it's completely crushed," Pascal Aussignac, chef and owner of five French restaurants in Britain, told AFP.
The UK government last week switched to its so-called "plan B" to deal with coronavirus, advising people to work from home if they can since Monday and mandating they wear masks in most indoor settings.
MPs also backed proposals Tuesday to introduce a Covid pass for people to access large-scale events.
It comes as cases double roughly every two days and health officials reported more than 93,000 new infections Friday, the third consecutive record daily tally.
"It looks like we have less people," said James Ross, co-founder of Badger Badger, a pub, eatery and daytime workspace in southeast London.
He added the business had seen a "significant" drop in income, with revenue down by 10 percent over the last week and 35 percent below his expectations for the pre-Christmas period.
Trade body UKHospitality's boss Kate Nicholls said hospitality sales have already plunged by more than a third over the past 10 days with 2 billion pounds ($2.7 billion, 2.4 billion euros) of trade already lost in December.
- 'What can we do?' -
Meanwhile, at the White Hart pub in east London, owner Patrick Mullighan revealed he had been forced to shutter his kitchen after his chef contracted Covid-19.
"It represents a lot of money," he said of the losses from the closure.
"I'm always worried but what can we do? You've got to carry on," said Mullighan.
Hospitality outlets have been left with little choice but to stay open in order for most to pay their rents.
Ross, who only opened Badger Badger in October 2020, said he felt "fortunate" to have agreed a "Covid clause" in its lease.
"We don't pay the rent if we have to close" due to the virus, he noted.
Aussignac is also in regular contact with the owners of his restaurants to discuss various issues, including the rents.
But without a return to greater government financial aid, "the problem will be the staff," he warned.
The government ended its costly scheme to support businesses with furloughed workers in September.
Critics argue that following numerous ominous warnings about Omicron and its dangers, this has created a lockdown by stealth without the necessary assistance from the finance ministry.
Aussignac said it felt like being "caught in a vice" between disappearing customers, post-Brexit recruitment problems and wage inflation as well as increasingly expensive European products.
He expects many bankruptcies in the absence of some form of renewed government support.
The chef would consider relocating at least one of his restaurants from central London to more residential areas better suited to the flexible working arrangements that have become more common.
But after 18 months of difficulties, he noted "we have no cash flow".
- 'Chaos of inaction' -
Ross fears that further restrictions, which could be introduced after Christmas, will further squeeze the sector.
Wales, for example, has just announced the closure of nightclubs from December 27.
Retailers are also suffering, with the owner of toy chain The Entertainer, Gary Grant, telling The Guardian the business had seen footfall drop by a fifth.
That followed a rise in UK retail sales in November, thanks to Black Friday and early Christmas shopping.
Meanwhile, aviation is another sector hit hard by the pandemic, with airlines and related operators suffering from a drop in short-term bookings following the reintroduction of some travel curbs and renewed uncertainty.
Finance Minister Rishi Sunak cut short a trip to Silicon Valley in California, meeting virtually with representatives of struggling industries on Thursday ahead of returning to London on Friday.
But there has been no announcement of renewed UK government aid of the kind seen earlier in the pandemic.
Welsh First Minister Mark Drakeford on Friday announced £60 million in support for affected businesses.
His Scottish counterpart Nicola Sturgeon has slammed Prime Minister Boris Johnson's "chaos of inaction" on Twitter.
"We must advise people to cut social contacts to a minimum... but then compensate businesses for the impact of fewer customers & support venues to cancel events if necessary," she added.
THE government is preparing to take control of Liberty Steel’s South Yorkshire factories if their owner, businessman Sanjeev Gupta, fails to secure a last-minute rescue deal.
The move could save around 1,500 jobs at Speciality Steel UK, which includes steelworks in Rotherham and Stocksbridge.
At a High Court hearing on Wednesday (20), it was revealed that the government’s official receiver is ready to step in as administrator if the company goes into compulsory liquidation. Speciality Steel is facing closure after struggling for years under mounting debts and a lack of funding.
The court heard that the company has only £650,000 in its bank account but needs around £4 million each month just to pay wages. Lawyers representing creditors are pushing for the company to be wound up so its assets can be sold to repay debts. Creditors include major banks, suppliers, and Walsall Borough Council.
Sanjeev Gupta, the head of the GFG Alliance, is trying to avoid a government takeover. His lawyers asked the court to delay any decision, saying he is close to finalising a £75m funding deal with US investment giant BlackRock.
The plan would involve a “pre-pack” administration, allowing Gupta to buy back the company through a management buyout. The process is being advised by restructuring firm Begbies Traynor.
Gupta’s team argued that this commercial solution, backed by private investment, would protect jobs, keep the steelworks running, and come at no cost to UK taxpayers.
A spokesperson for Liberty Steel said, “We continue to believe our commercial solution, backed by major private capital, provides the best outcome for the business, its employees and all stakeholders concerned, without cost to UK taxpayers or unnecessary uncertainty.”
Judge Sally Barber said she could not make an immediate decision and needed more information about the next steps. She warned against acting “on a completely blind basis” and adjourned the case to give time to consider all options.
The Department for Business and Trade confirmed in a letter to creditors that the Government is ready to act.
“The official receiver is prepared, should SSUK enter into compulsory liquidation, to take control of SSUK’s affairs,” the letter said.
The government stressed that no final decision had been made to take the company into state ownership. Any such move would require ministerial approval. However, officials confirmed they had already been contacted by third parties interested in restarting steel production at the sites.
This would be the second government intervention in the UK steel industry this year. In April, ministers took control of British Steel’s plant in Scunthorpe, which was losing £250m annually. Last year, the government also gave Tata Steel a £500m support package to develop a greener electric arc furnace in Wales.
Liberty Steel’s Rotherham site hosts the UK’s largest electric arc furnace, which uses recycled scrap metal. The plant has not produced steel for about a year due to cash shortages, but workers have continued to be paid.
The problems began after the collapse of Greensill Capital in 2021, which had provided billions in loans to Gupta’s businesses. Investigations by the Serious Fraud Office into the GFG Alliance over suspected fraud and money laundering have also made fundraising more difficult.
Citibank alone is reportedly owed £233m by Speciality Steel. The creditors claim that allowing Gupta to retain control would write off most debts, and they prefer a government-led liquidation process that could offer a better chance to recover funds.
Judge Barber has referred the case to a different court, which is expected to make a final decision in the coming days, reports said.
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Tesco has increased the price of its meal deal, sparking shopper anger.
Clubcard members now pay £3.85 (up from £3.60), while non-members pay £4.25 (up from £4).
Premium meal deals also rise, costing up to £6 without a Clubcard.
Some shoppers threaten a boycott, while others argue the deal still offers value.
Tesco raises meal deal prices
Tesco has announced a price hike on its popular meal deals, prompting criticism from shoppers and even boycott threats.
From this week, the standard meal deal — which includes a main such as a sandwich or salad, a snack, and a drink — will cost £3.85 for Clubcard holders (up from £3.60), and £4.25 for non-Clubcard holders (up from £4).
The supermarket’s premium meal deal, which includes higher-end options, has also gone up from £5 to £5.50 for Clubcard holders, and from £5.50 to £6 for those without.
Shopper reactions divided
The price rise has sparked a wave of frustration online, with some customers claiming the deal no longer offers value.
On Reddit, one shopper wrote: “I will be boycotting the meal deal from [Tesco] when this hike occurs.” Another added: “That’s it, I’m legit done buying these now.”
A reader responding to Manchester Evening News said: “Everything that once was a deal no longer is.”
However, not all shoppers share the outrage. Marlene Whitehead commented: “That’s still good value.” While Peter Collins argued: “It’s actually still very good value compared to buying the items separately eg., Costa coffee on its own would be roughly £2.60.”
Do Tesco meal deals still save money?
Despite the increase, Tesco insists its meal deal remains competitive. Popular choices — such as a Tesco Chicken Club sandwich, an Egg Protein Pot, and a 500ml Coca-Cola — cost £6.50 if bought individually.
That means Clubcard members still save £2.65, while non-members save £2.25.
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Looking ahead, Chaudry said: 'Our core strategy is centred on gyms, fitness, and wellness. Through our premium health club brand M Club and our affordable fitness chain igym, we will continue expanding across the UK.'
WATERWORLD Aqua Park has been sold to European leisure operator the Looping Group in a multi-million pound deal.
The sale takes M Investment Group’s net assets beyond £110 million, with overall shareholder value now exceeding £170 million.
Mo Chaudry, chairman of M Investment Group, said: “Waterworld has been a huge part of my life and business journey and I am proud of everything we have achieved as a Team. I am now handing over the baton to Looping, a world-class operator with the vision and expertise to take Waterworld even further ensuring the resort has an exciting future.”
He said Waterworld had been “an incredible success story and a big part of my life for over 26 years. But the time is right to hand over the baton to Looping, a world-class operator with the scale and expertise to take the attraction to the next level. This sale also enables M Investment Group to sharpen our focus on our core strengths in fitness, wellness, and international leisure opportunities.”
Chaudry confirmed that the details of the deal remain confidential but added: “As a result, M Investment Group’s net assets now exceed £110 million, and our overall business worth has grown to more than £170 million. It’s a major milestone in our journey.”
He said staff jobs at Waterworld are secure. “They have a proven track record of running successful leisure destinations across Europe, and they’ve made a clear commitment to investing in the park and supporting the local community. Staff jobs are secure, and the park’s loyal visitors can expect even more exciting developments ahead.”
Looking ahead, Chaudry said: “Our core strategy is centred on gyms, fitness, and wellness. Through our premium health club brand M Club and our affordable fitness chain igym, we will continue expanding across the UK. At the same time, our fitness solutions provider Pulse Global Group is targeting strong international growth in the Middle and Far East regions with outstanding long-term potential.”
He said Waterworld had played a key role in his business journey. “Waterworld has been more than just a business — it’s been a passion. It taught me valuable lessons in entrepreneurship, resilience, and vision. It’s been a place where millions of families have created memories, and I’m proud to have played a part in that.”
Chaudry confirmed he will not remain involved in its operations. “Waterworld will now be fully operated by Looping. I’ll remain a passionate supporter but my focus as Chairman of M Investment Group will be on driving our next phase of growth.”
Looping Group operates more than 20 leisure destinations across Europe. Laurent Bruloy, Executive Chairman and co-founder of the group, said: “We are delighted to welcome Waterworld into the Looping family. It is a truly iconic attraction, and we look forward to building on its reputation for excellence while supporting the regional community.”
Chaudry said he is now focused on the future. “I’m excited about the opportunity to make a lasting impact on health and wellbeing, both in the UK and internationally. With the combined strength of M Club, igym, and Pulse Global Group, we are well positioned in the fast-growing fitness and wellness sector whilst continuing to build a world-class family investment group.”
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FILE PHOTO: A pharmacist shows a box of Prednisolone by Zentiva in Brest, western France. -(FRED TANNEAU/AFP via Getty Images)
INDIA's Aurobindo Pharma on Wednesday (20) dismissed media reports suggesting it had finalised a deal to acquire Czech drugmaker Zentiva, calling the claims “premature” and added that no binding agreement has been signed.
The clarification came after The Economic Times reported that Aurobindo was the frontrunner to acquire Zentiva from US-based private equity firm Advent International in a deal valued between $5 billion and $5.5bn (around £3.95bn to £4.35bn). If confirmed, this would be the largest-ever overseas acquisition by an Indian pharmaceutical company.
However, Aurobindo issued a statement to stock exchanges denying that any agreement had been finalised.
“As part of our business strategy, the company regularly explores various strategic opportunities, including potential acquisitions and partnerships, which can enhance shareholder value,” Aurobindo Pharma said in a regulatory filing on Wednesday.
“But at present, no binding agreement or definitive decision has been made by the Board of Directors of the company in relation to the transaction referred to in the said article(s). Accordingly, the said news item is premature and should not be relied upon,” the company added.
Aurobindo also assured investors that it would make timely disclosures if any definitive development arises that requires notification under India's regulator, SEBI.
The company's shares fell as much as 4.7 per cent during early trading on Wednesday after the report was published, but recovered slightly following the clarification. The stock closed 3.9 per cent lower on the NSE. So far in 2025, Aurobindo Pharma’s stock has dropped around 21 per cent, compared to a two per cent rise in the benchmark Nifty 50 index.
Advent International and Zentiva have not commented on the report.
Zentiva, based in Prague, is a well-known producer of generic medicines across Europe. If Aurobindo were to go ahead with the acquisition, it would mark a major step in expanding its presence in the European market and diversifying its portfolio beyond the US.
The reported deal would surpass other significant transactions in the Indian pharma sector, including Sun Pharma’s acquisition of Ranbaxy and Biocon Biologics’ buyout of Viatris’ biosimilar business.
Aurobindo is already active in international expansion. In July, its wholly owned US subsidiary signed a deal to acquire Lannett Company LLC, a generics manufacturer, for about $276 million (£218m). That deal is aimed at strengthening its manufacturing base and product offerings in the US.
The US remains a crucial market for Aurobindo, contributing nearly half of its annual revenue. Industry analysts say Indian pharma firms are increasingly pursuing global acquisitions to mitigate risks from potential US trade policies. US president Donald Trump had recently suggested steep tariffs on imported medicines.
“We’ll be putting initially a small tariff on pharmaceuticals, but in one year – one and a half years, maximum – it’s going to go to 150 per cent and then it’s going to go to 250 per cent because we want pharmaceuticals made in our country," Trump said in an interview.
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Britain’s food retailers have said that higher employer taxes and regulatory costs as well as increased staff wages are adding to inflationary pressure
British grocery inflation nudged down to stand at five per cent over the four weeks to 10 August, data from market researcher Worldpanel by Numerator showed on Tuesday (19), providing a little relief for consumers.
The figure, the most up-to-date snapshot of UK food inflation, compared with 5.2 per cent in last month’s report.
“We’ve seen a marginal drop in grocery price inflation this month, but we’re still well past the point at which price rises really start to bite and consumers are continuing to adapt their behaviour to make ends meet,” Fraser McKevitt, head of retail and consumer insight at Worldpanel, said.
The researcher said prices were rising fastest in markets such as chocolate, fresh meat and coffee and falling fastest in champagne and sparkling wine, dog food and sugar confectionery.
Britain’s food retailers have said that higher employer taxes and regulatory costs as well as increased staff wages are adding to inflationary pressure from higher prices for commodities.
Trade body the British Retail Consortium, which represents Britain’s biggest retailers, predicts that food inflation will hit 6 per cent by the end of the year, putting more pressure on household budgets in the run-up to Christmas.
The Bank of England has forecast it will hit 5.5 per cent before Christmas and then fall back as global wholesale factors fade.
Official UK inflation data for July will be published on Wednesday. (Reuters)