Tier 4 shutdown to have £3.75bn hammer blow effect on London economy

London’s battered economy will suffer a further £3.75 billion hit over the next month after the Christmas shopping rush was stopped dead in its tracks, according to City forecasts.

All but essential stores such as supermarkets were forced to close yesterday after Boris Johnson said the capital would be placed under new Tier 4 restrictions to help slow down the spread of the new strain of the virus.

The announcement triggered a surge of shoppers on Saturday night in the West End and at major shopping centres followed by a return to the “ghost town” scenes yesterday last witnessed during the first lockdown in the spring.

Business group the New West End Company said there were 20,000 fewer visitors yesterday compared with Saturday on a day that would normally be one of the busiest of the entire year.

While today the streets of central London were deserted as shops stayed closed and people  followed stay at home advice.

Rachael Robathan, leader of Westminster council, said: “The shockwaves of this are going to jolt through every part of Westminster. This is an absolute tragedy for everyone who had worked so hard to revitalise our West End and fan the embers of recovery for our city. But this is now a pan-London emergency and I am talking to central and local government leaders as part of our coordinated response.  

“Westminster city council’s priority is to help our residents and businesses get through the immediate impact and what faces us over the coming weeks.”

In another blow to the West End, the 95-year-old cabaret venue Café de Paris, which survived a direct hit in the Blitz and hosted stars such as Frank Sinatra and Judy Garland, said it is to close permanently.

In a statement, the venue said: “We wanted you all to know that we have not gone out without a fight. We tried everything but the devastating effect of Covid-19 in the end was too much.”