A north hotelier has spoke of his relief as the government steps in to pay people’s wages after the coronavirus outbreak left him struggling to pay staff.
Tony Story owns Inverness’s Kingsmills Hotel and the new five star Ness Walk.
The Kingsmills has seen a significant drop in guest numbers since the coronavirus outbreak, causing financial straits on the popular venue.
Hotel owner Tony Story said the global situation has drastically reduced business levels meaning that incomings were no longer “supporting the business”.
He explained: “This is obviously a very, very fast moving and very fast changing situation. What we have done is we have consulted with all of our employees and we have said to them, clearly the business levels will not support the business.
“The guests are just stopping coming so it’s not a question of trying to do anything other than help everyone.”
During initial consultations with staff, Mr Story raised the prospect of moving employees to zero hour contracts as part of their effort to keep the city four-star hotel open.
The move was also offered to staff at Ness Walk Hotel prior to its closure.
He said: “Absolutely correct that position has been put to our employees but what we have said is you don’t have to sign this but it would help the business if you did.”
Mr Story praised the “extraordinarily fabulous people” who have offered their support.
He said one employee wrote to him, saying: “I’m with you 100% of the way.”
And the Executive Head Chef at his Ness Walk Hotel added: “I devote myself to Kingsmills Group and Ness Walk hotel and I give you my word that I am going to stand by you through this tough time.”
Chancellor of the Exchequer, Rishi Sunak announced unprecedented measures to help safeguard employment for British workers affected by the coronavirus outbreak.
He said “For the first time in our history the government is going to step in and help to pay people’s wages” through the establishment of the Coronavirus job retention scheme.
Employers will be eligible to apply for a grant from HMRC to cover wages of individuals who are not working but will be retained during the course of the outbreak.
Mr Story said he was “utterly relieved” by the news.
He added: “The headlines is I think great news as long as the system comes so we can meet the April pay role but what a massive undertaking.
“My business is in such a state we are so close to the point that it is uneconomic to be open, but I most likely will close the hotel because how can I operate the hotel with no bar and restaurant.
“But this announcement means we can absolutely keep everyone.”