Thousands of jobs are feared to be at risk as tier three Covid restrictions come into force this week in London, at a time when the streets would normally be packed with Christmas shoppers.

London is the UK’s biggest retail centre, home to flagship malls such as Westfield in the east and west, and the country’s premier city-centre shopping streets.

Although ‘non-essential’ retailers can continue to trade, the closure of bars and restaurants from Wednesday, other than for takeaways, is likely to impact footfall and many consumers are likely to avoid travel and busy places.

Confederation of British Industry London director Eddie Curzon said: “Businesses in London understand that rising infection rates must be controlled and tougher restrictions are necessary to save lives and protect against longer-term economic scarring.

“However, the financial impact of moving London into tier three will be stark. Businesses – particularly those in sectors like retail and hospitality – will have been counting on a festive fillip to help mitigate months of hardship and further restrictions now will come as a devastating blow. Thousands of jobs and livelihoods could be at risk.

“It’s vital that any tightening of measures anywhere across England is shaped by clear evidence, consistently applied and accompanied by increased support for businesses in the worst-hit sectors.”

Ros Morgan, chief executive of the Heart of London Business Alliance, which represents business and property owners in areas including Piccadilly and Leicester Square, said: “It’s extremely disappointing to see London moved to tier three. Public health rightly remains the priority but almost shutting down central London the week before Christmas will have a hugely negative impact on already hard-hit sectors. 

“We believe London needs a clear roadmap out of this crisis. Our experience over the summer shows that footfall will not return instantly even when restrictions are lifted and businesses will therefore need continued support so that they can play a role in helping drive London and the UK’s economic recovery.”

Typically, the eight weeks of peak Christmas trading generate sales of £2.5bn in London’s West End alone.

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