The government have today announced that it will significantly increase their winter support schemes to ensure hospitality businesses and jobs across the UK continue to be protected in the difficult months to come.
Chancellor of the Exchequer Rishi Sunak has said that he would be increasing support through the existing Job Support and self-employed schemes, and expanding business grants to support companies in high-alert level areas.
This building on agreements reached with Local Authorities moving to Alert Level very high, with extra support for businesses, jobs and the economic recovery.
Premises in many northern cities, including Leeds, are facing the prospect of tough new coronavirus restrictions – including the potential closure of pubs and restaurants – amid fears the disease is spiralling out of control.
For now, however, Leeds will remain in the Tier 2 coronavirus restrictions.
And whilst it's good news that they'll be allowed to remain open, they will not be privy to the government's beneficial support that Tier 3 areas, which come into force for South Yorkshire on Saturday, as some businesses will be forced to close their doors.
Pubs and bars that do not serve substantial meals, betting shops, adult gaming centres, casinos and soft play centres will all have to close. These restrictions affect Sheffield, Doncaster, Barnsley and Rotherham - all that will be put into Tier 3.
Last week, bars, pubs and restaurants across Leeds had spoken out on their concern with the lack of government support for areas in Tier 2.
Dave Olejnik, who owns Sarto and Laynes Express said: "Since the government's decision to enforce the local lockdown and curfew, it's been a very tough time.
"It's insane how quiet it is around Leeds city centre. For us, this is tough enough for us to survive.
"If we stay in Tier 2 and do not receive any government support, but it would be a nail in the coffin - it would be completely crippling. We'll be scraping the bottom of the barrel to stay open."
However, it has been confirmed today that hospitality, leisure and accommodation businesses operating under Tier 2 restrictions are to receive cash grants from the government as part of expanded financial support to help Britons "through the difficult winter months ahead".
Rishi Sunak announced that firms in 'high' coronavirus alert level areas will be able to apply for grants worth up to £2,100 a month.
Tier 2 business grants will be available retrospectively for areas which have already been under the restrictions.
The Jobs Support Scheme is also being made "simpler and more generous", with staff only needing to work one day a week to be eligible and the contribution employers make is being "significantly" reduced.
The scheme - which will come into effect on November 1 - has been altered, meaning businesses will only need to pay 5% of unworked hours, rather than 33%.
It means if someone was being paid £587 for their unworked hours, the government would be contributing £543 and their employer only £44.
And Self-Employment Income Support Scheme is being doubled from 20 per cent to 40 per cent, meaning the maximum grant will increase from £1,875 to £3,750, over three months.
The increased Self-Employment Income Support Scheme is estimated to provide a potential further £3.1bn in support. A further three month grant will be available covering February to April.
Rishi Sunak said: “I’ve always said that we must be ready to adapt our financial support as the situation evolves, and that is what we are doing today. These changes mean that our support will reach many more people and protect many more jobs.
"I know that the introduction of further restrictions has left many people worried for themselves, their families and communities. I hope the government’s stepped-up support can be part of the country pulling together in the coming months."
