The current upgrade of the UK is a sensible move by the government as it needs to see how the UK is progressing.
The next two weeks will be critical for how the coronavirus R rate in the UK develops. If by mid July things are good then one can expect the Cypriot government to move the UK to category A.
One should not rush when it comes to health as we witness in the US. Also Cyprus will have the benefit of seeing how other countries, which allow the UK tourists, manage.
Upgrading a country form C to A immediately purely to benefit the hoteliers would not have been a wise move.