Labour has accused Chancellor Rishi Sunak of putting at risk over 100,000 jobs in the North West in sectors now considered "unviable".
The opposition party says Mr Sunak's Winter Economic Plan revealed last week will mean whole sectors of the economy generating billions and employing millions are "consigned to the scrap heap".
Mr Sunak announced the new job support scheme last week as part of the government's latest economic response to the pandemic, which would mean directly supporting wages of people in "viable jobs" - alongside a host of other new measures.
However the speech failed to mention businesses that are not able to operate, because they are either shut down completely or trading with reduced capacity including the weddings industry, events and exhibitions, major parts of the night-time economy, festivals, sports venues and theatres.
Shadow Ministers said there was no acknowledgement at all about their plight or that they will be "forced to remain fully or mainly closed for the next six months".
The party said analysis using Office for National Statistics Data showed that more than 1m workers could now be dismissed as "unviable" by the Government.
According to Labour, these are the industries and employees in the North West that the Chancellor has "abandoned":
- The UK’s night life industry – including 6,000 people employed in nightclubs, 42,000 people employed in pubs and bars. Either still shutdown or operating at reduced capacity and now hit by 10pm curfew.
- The events industry – including 15,000 event caterers, 950 people organising and running exhibitions and conferences.
- The creative, arts and entertainment sector including theatres and cinemas – still shut-down or operating at reduced capacity – employing 4,000 people.
- The wedding industry – the number of employees is too difficult to capture from available statistics but includes caterers, florists, photographers, dressmakers, and suppliers of all kinds. The industry has been hit by new restrictions: the number of wedding guests has been halved from 30 to 15, which will hit at least 70,000 weddings. It has been estimated the UK’s wedding industry has already lost an estimated £4.8bn as a result of coronavirus, with 127,000 nuptials postponed to 2021.
- The sports industry – employing 48,000 people.
And the number of businesses across the North West Labour said have been 'dismissed as unviable':
- 890 night clubs, still under lockdown and therefore unable to access the Job Support Scheme
- 80 cinemas operating at hugely reduced capacity
- 4,540 pubs and bars hit by the new 10pm curfew
- 1,750 creative and arts venues in many cases still closed
Labour also said the failure of the government to implement an effective test, track and trace system means that these businesses do not have any idea of when they can safely reopen.
Lucy Powell MP, Shadow Minister for Business and Consumers, said: “The Chancellor is consigning whole sectors of our economy to the scrap heap, damaging lives and livelihoods, and threatening the recovery. The failure of Ministers to ensure an effective test, track and trace system means that many businesses are still fully or partially shut down. The decision to shut these firms out of the Job Support Scheme adds insult to injury.
“Labour has called for the government to come forward with an effective plan to recover jobs, retrain workers and rebuild businesses. This isn’t it. Even for those who can access it, the Job Support Scheme is badly designed and could lead to a wave of job losses, because the Chancellor’s sums do not add up for businesses.
“He must think again, before the jobs crisis reaches tipping point.”
Amanda Milling, co-chairman of the Conservative Party, responded: "We know that many people are worried about their future, which is why the Chancellor has put in place a Winter Economy Plan to support jobs and businesses.
"This is in addition to one of the most comprehensive packages of support in the world - worth £190 billion so far.
"For all their political point-scoring, we are yet to hear a plan from Labour beyond empty statements. Rather than viewing the pandemic as a 'good crisis' to exploit, they should focus on acting in the nation's interest - not just their own."
A Treasury spokesman said: "Our support for business has reached, and continues to reach, millions of firms. The Job Support Scheme is designed to protect jobs in businesses facing lower demand over the winter due to Covid, and is just one form of support on offer to employers during this difficult period.
"Businesses can still access our loan schemes, now extended, defer VAT payments previously due in March, and benefit from business rates holidays, a moratorium of eviction for commercial tenants and the Statutory Sick Pay Rebate Scheme.
"We're also continuing to innovate in supporting incomes and employment through our Plan for Jobs announced in July, helping employees get back to work through a £1,000 retention bonus and creating new roles for young people with our Kickstart scheme."
