Businesses in “high-risk” areas such as London and Birmingham, since they can still open, receive reduced funding.
According to news, companies in parts of England under Tier 2 coronavirus restrictions will get additional financial help in a package unveiled today by the chancellor.
According to The Daily Telegraph, Rishi Sunak will announce the new measures in the Commons later, targeted particularly at pubs, bars, and restaurants.
Actually, in “at-risk” areas such as London and Birmingham, hospitality premises are only permitted to take clients from the same household, unless mixed groups sit outside, resulting in a substantial drop in footfall.
While they are permitted to remain open, they are entitled to less financial help, unlike those in Tier 3.
They will apply for a scheme that pays 55 percent of employee salaries, but businesses forced to close in “extremely high risk” areas will get 66 percent of wages paid, as well as £3,000 in company grants a month.
Mr. Sunak’s new plans come after concerns from industry leaders that in the run-up to Christmas, the tiered lockdown structure is putting thousands of hospitality jobs at risk.
With Coventry set to switch to Tier 2 this weekend, West Midlands Mayor Andy Street said a “significant economic obstacle” would be the new rules.
“He tweeted:” There is currently no additional financial support available in Tier 2 for our hospitality industry, which may not be right.
“I’m going to keep pushing Govt on this & I ‘m sure that we’re going to get a breakthrough soon.”
Greater Manchester Mayor Andy Burnham said that following almost two weeks of friction with ministers over his Tier 3 financial support contract, he will “look closely” at the Tier 2 plans.
Boris Johnson announced on Wednesday that Greater Manchester will get £60 m in funding.
“But Mr. Burnham said: “For three months, Greater Manchester has been in ‘high’ warning, but our hospitality companies have not had any emergency support.
In Tier 3 negotiations, we demanded that this be taken into account. The government has declined.
Police Minister Kit Malthouse told Kay Burley of Sky News that the chancellor had a good track record of “flexing the support the economy needs to ensure that we remain in the best condition we can possibly be.”
It comes after leaders in South Yorkshire won £41 m in support for “businesses and individuals” ahead of them on Saturday heading into Tier 3.
Mayor Dan Jarvis of the Sheffield City Area led the Westminster talks and said he “moved heaven and earth to obtain the full amount of money we might have.”
As other regions are put under tougher measures, Mr Burnham’s lengthy debate with the government could now cause more tensions.
On Thursday’s announcement, the Chancellor’s spokesperson said: “The Chancellor is expected to update the House of Commons on the economic situation, in particular, and to the degree that it relates to the new restrictions.”
“And what we have always said is that our support plan is always versatile and always up for review to ensure that the situation is dealt with as it arises.”