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The government has given Greater Manchester until noon tomorrow to reach an agreement on Level 3 restrictions.
Communities Secretary Robert Jenrick said 10 days of “good faith” discussions have not resulted in an agreement, warning that the prime minister would have to intervene if an agreement is not reached before the deadline.
Greater Manchester Mayor Andy Burnham and other local leaders have been demanding increased financial support for businesses that would be affected by the region’s entry to the highest level of COVID-19 measures.
And, in an increasingly bitter political dispute, additional talks on Monday did not end in an agreement.
In setting Tuesday’s deadline for a deal, Jenrick said Monday night: “The public health situation in Greater Manchester continues to deteriorate.
“We have now had 10 days of discussions, in good faith, with local leaders in Greater Manchester. So far we have not been able to reach an agreement.
“We have offered a comprehensive support package, in addition to the national measures that the foreign minister has established.
“I have written tonight to the Mayor of Greater Manchester and the local leaders of the city region to tell them that if we cannot reach an agreement before noon tomorrow, then with deep regret I will have to advise the Prime Minister we cannot reach an agreement at this time. “
When asked if the continued absence of an agreement before the deadline would result in the government imposing Level 3 restrictions on Greater Manchester, Jenrick replied: “That is a matter for the prime minister to decide.”
The cabinet minister said the government had offered a financial package “commensurate” with the support given to Lancashire and the Liverpool city region, the first two areas in England to enter Level 3 restrictions.
“Local leaders, so far, have not been willing to accept these proposals,” he added.
Burnham has called for a leave plan that covers 80% of the salaries of the employees of those companies that are forced to close, or at least the national minimum wage, as well as support for the self-employed and better compensation for companies.
Earlier on Monday night, Mr Burnham said: “We went to today’s meeting with the government with a positive and unanimous opinion among Greater Manchester leaders that we should seek a resolution as soon as possible.
“We had been encouraged by previous discussions at the official level in which the government had presented the idea of a fund for difficult situations, to complete the license payments and support the self-employed.
“It was surprising and disappointing when the secretary of state took this idea off the table.”