Is Rishi about to announce a Tier Two bailout? Treasury insists ‘evolving and comprehensive’ support for business amid backlash from pubs and restaurants as Chancellor is ‘acutely aware of financial costs’ on those firms
- Chancellor Rishi Sunak under pressure to bring forward more help for business
- Extra help has been pledged for companies in Tier Three areas forced to close
- But growing concerns for firms in Tier Two with no support but fewer customers
- Ministers today said programme of support is ‘evolving and comprehensive’
Ministers today prompted speculation Rishi Sunak could soon announce a bailout for businesses which are ‘open in name only’ due to Tier Two coronavirus rules.
The Government has pledged extra financial support for pubs, bars and restaurants which are forced to close in Tier Three areas.
But there are growing concerns about businesses in Tier Two parts of the country which are not required to shut but have suffered a massive drop in customers due to restrictions on household mixing.
Treasury minister Jesse Norman told the House of Commons the Government is ‘acutely aware of the financial costs on those businesses’ in Tier Two.
And in a potential hint that there may be more help to come he said the current programme of support for businesses is ‘evolving and comprehensive’.
Chancellor Rishi Sunak is under pressure to bring forward support for businesses in Tier Two areas which are ‘open in name only’
The issue was raised in the Commons today by Labour shadow Treasury minister Abena Oppong-Asare.
Ms Oppong-Asare told MPs: ‘In regions facing Tier Three restrictions many businesses have been forced to close.
‘In Tier Two regions many businesses, especially in hospitality, are open in name only – running up all the costs without the customers.
‘What does the Government have to say to those businesses which realistically cannot operate and are not legally required to close?’
Mr Norman replied: ‘The answer to the question (Ms Oppong-Asare) raises is, of course, that we are acutely aware of the financial costs on those businesses, as we are on businesses that have been forced to close.
‘That is why we have put in place an evolving and comprehensive programme of support for business.’
Mr Sunak announced earlier this month that the Government’s Job Support Scheme, the replacement to the furlough programme, would be expanded to support businesses required to close because of local coronavirus restrictions.
Treasury Minister Jesse Norman today said the Government is ‘acutely aware’ of the challenges faced by businesses in Tier Two areas and that the support programme is ‘evolving and comprehensive’
The Treasury has committee to paying two thirds of employees’ salaries in affected areas while cash grants of up to £3,000 per month are being offered to businesses told to shut.
The forced closure of pubs, bars and restaurants is reserved to Tier Three areas – the top level of restrictions.
But many businesses in Tier Two areas feel they have been left in limbo because while they are technically allowed to remain open, other rules mean customer numbers have dropped significantly.
Tier Two includes a total ban on households mixing indoors but they can mix outdoors, including in pub gardens, as long as they stick to the Rule of Six.