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The Chancellor is set to announce a new support package for companies affected by the Level 2 restrictions, according to reports.
Rishi Sunak will unveil a new plan to help businesses, particularly pubs and restaurants, that have seen their trade drop as a result of social restrictions in the “high” category of Covid-19.
Currently, businesses in Tier 2 areas, such as London and Birmingham, do not benefit from the same government support as Tier 3 ones, including business subsidies and higher wage subsidies, because they can remain open.
Sunak will make a statement to the Commons Thursday morning and the Telegraph reported that it will unveil financial measures to help Tier 2 businesses following complaints from industry leaders and MPs that thousands of jobs were at risk earlier. of Christmas.
The Chancellor’s spokesman told the Palestinian Authority news agency: “The Chancellor must update the House of Commons on the economic situation, in particular, and regarding the new restrictions.
“And what we’ve always said is that our support package is always flexible and always available for review to make sure you’re dealing with the situation as it evolves.”
At Level 3, social mixing is prohibited both indoors and in private gardens, while pubs and bars must close unless they can function as a restaurant.
For companies in this band that cannot legally operate due to Covid-19 restrictions, the government will pay employees 66% of their salary, and the employer will continue to contribute to pensions and National Insurance.
Meanwhile, Tier 2 companies can only claim a scheme in which employers have to pay around 55% of staff salaries with a lesser subsidy from the government, while still subject to indoor domestic mixing bans.
Greater Manchester Mayor Andy Burnham said he would be “watching closely” the announcement, after he was involved in discussions with ministers for days about what support his region’s businesses should get to move to Level 3.
He said: “Greater Manchester has been on ‘high’ alert for three months, but our hospitality businesses have not had any emergency support.
“We asked that this be taken into account in the Level 3 negotiations. The government refused.”
It comes as talks with local leaders in South Yorkshire were called a “sham” as the area was confirmed to move to Level 3 this weekend.
Sheffield City Council Leader Julie Dore said it was clear that Downing Street officials and ministers were “making the motions” in 10 days of negotiations just to “try to show they were listening.”
Ms Dore spoke after Sheffield City Region Mayor Dan Jarvis, who led the discussions, admitted that he couldn’t have gotten more cash, saying he “moved heaven and earth to secure the maximum amount of resources. that we could ”.
Ms Dore told the Palestinian Authority news agency: “I can assure you that Dan has been fighting loudly for the people of Sheffield and South Yorkshire, just like I have, because we really thought we were in proper discussions and negotiations. “.
Talks to move parts of the Northeast to Level 3 are understood to have been suspended, but Coventry will move out of the “middle” Level 1 restrictions this weekend, joining other Midlands neighbors at Level 2 after an increase in the cases. .
West Midlands Mayor Andy Street said the new rules will present a “serious economic challenge” and called on the central government to update its support.
He tweeted: “Currently, there is no additional financial support available for our Tier 2 hotel sector, which cannot be correct.
“I will continue to pressure the government on this and I am confident that we will make a breakthrough soon.”
Meanwhile, the University of Oxford has said that a trial of its vaccine developed with AstraZeneca will continue in Brazil after the death of a volunteer.
The institution said it has investigated the case but found no “safety concerns” surrounding the vaccine.
On Wednesday, the UK reported its largest daily increase in laboratory-confirmed coronavirus cases since the outbreak began.
The government announced another 26,688 laboratory-confirmed cases of Covid-19 in the UK, bringing the total number to 789,229, a jump of more than 5,000 from the 21,330 positive cases confirmed Tuesday, while another 191 people died within 28. days of a positive test, which means the death toll reached 44,158.
Amid the continued rise in cases, a Sage scientist warned that the UK can expect thousands of deaths from the second wave of the disease.
Professor John Edmunds told MPs: “We will see spikes around Christmas, in the new year, in very serious numbers of cases across the UK.”
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