(Bloomberg). Rishi Sunak has announced that a billion pounds ($1.3billion) will be provided to U.K. hotels and hospitality companies suffering from slumping sales due to a record-breaking wave of Covid-19 infection. However, he refused to exclude further measures to combat the rapidly spreading omicron variant.

The U.K.’s Chancellor of Exchequer announced Tuesday that cash grants will be available to eligible pubs, restaurants, and hospitality and leisure companies. In a pooled broadcast interview, he also revealed additional cash to help cultural institutions as well as companies that have been paid sick leave.

The move aims to end a growing clamor from firms for more support, amid what the Confederation of British Industries has called a “lockdown by stealth” as Britons steered clear of social gatherings to avoid the virus. The Treasury has pointed out that there are already measures in place, including grants and lower business taxes, but the companies have called for more.

“The current situation is very difficult, especially for those in the hospitality industry,” Sunak said. Asked about the prospect of new restrictions, Sunak repeated Boris Johnson’s message that ministers can’t rule anything out. “We’re just dealing with an enormous amount of uncertainty at the moment.”

Sunak did, however, hint that the Treasury is prepared to step in with more assistance if tighter curbs are introduced, saying he will “always respond proportionately and appropriately to the situation that we face.”

Sunak stated that the grant amounts are similar to earlier in the year, when many businesses had to close. Another 30 million pounds will be put into a fund to support cultural institutions like museums and theatres.

Get Dire Warnings

The lobby group UKHospitality said Monday that December is set to be a “disaster” for the industry, with many businesses losing 40% to 60% of their trade. The group warned that companies could go bankrupt if they don’t receive government assistance.

The opposition Labour Party has criticized Sunak for his “radio silence” on the crisis, while the Night Time Industries Association urged him to “come out of hiding.” The chancellor was ultimately forced to cut short a work visit to California to jet back for talks with industry groups.

However, the assistance that was announced Tuesday did not meet business group demands. They also requested extensions to March’s tax break and a reduction of repayment terms for loans that are government-backed. Some industry chiefs had also wanted to see a return of Sunak’s flagship furlough program, through which the government splurged 70 billion pounds, paying up to 80% of the wages for 11.7 million jobs through to its end in September this year.

The new economic measures come with Johnson’s cabinet in disagreement over when and whether to bring in new curbs to stem the omicron surge. It would pose a political risk for Johnson, the prime minister. He is currently being held hostage by his Conservative Party and ministers including Sunak demanding more data about the severity of the omicron.

The Restless Scientists

The government’s Scientific Advisory Group for Emergencies, or SAGE, warned last week that “more stringent measures would need to be implemented very soon” to avoid daily Covid hospitalizations rising to at least 3,000, piling pressure on the National Health Service.

Johnson on Monday held off on bringing in new restrictions, saying that while his ministers didn’t exclude doing so if needed, for now they needed more information, even as daily cases soar above 90,000.

Earlier, Cabinet minister Steve Barclay suggested no steps will be taken before Christmas, telling LBC Radio: “We’re saying to people they should continue with Christmas, but in a cautious way.” He later told the BBC ministers must be “clear-eyed” about the economic consequences of any curbs.

SAGE said bringing back some of the restrictions used earlier in the year — including limits on household mixing and the closing of hospitality venues — could “substantially reduce” the peak in cases. 

One option they suggested was going back to so-called Step 2 restrictions in Johnson’s roadmap for emerging from the last lockdown. These restrictions included the ban on restaurants and pubs serving customers outside, an indoor mix restriction between households and six or two people being permitted to live together outdoors.

Johnson has so far resisted imposing some of the measures recommended by his scientists, and he’s promised Parliament would get a chance to vote on new curbs if he did bring them in. Recalling MPs would need at least a day’s warning, and U.K. papers have reported that may come after Christmas, with new rules taking effect before January.