Larger Manchester goes into the very best tier of coronavirus restrictions, regardless of failing to achieve an settlement with the federal government over the sum of money it ought to obtain to assist companies affected by the brand new guidelines.
South Yorkshire can also be coming into tier three however has reached a deal.
So, how are these help packages being determined and who’s getting what?
Tier 3 or “very excessive alert” areas are being provided two pots of cash by authorities: one to assist with native enforcement of Covid guidelines and test-and-trace schemes, and the opposite to help companies as they cope with the extra restrictions.
- Liverpool Metropolis Area is receiving £14m for the primary pot and £30m to help enterprise
- Lancashire is receiving £12m and £30m
- South Yorkshire is receiving £11m and £30m
- Larger Manchester is receiving £22m and £60m is being made obtainable (it didn’t comply with the £60m and had requested for more cash)
There are, clearly, totally different numbers of individuals dwelling in these areas so if you modify these figures for inhabitants measurement the quantity per particular person appears to be like roughly the identical, though there are some small variations.
- Liverpool Metropolis Area will get £28 per particular person
- Lancashire will get £28 per particular person
- South Yorkshire will get £29 per particular person
- Larger Manchester would obtain £29 per particular person
How is the cash determined?
Communities Secretary Robert Jenrick has stated that the cash allotted is “roughly”:
- £8 per particular person for enforcement and take a look at and hint
- £20 per particular person for enterprise help
This allocation may clarify why the federal government rejected Larger Manchester’s unique request for £90m enterprise funding, as this might have labored out at £32 per head for that portion of the funding.
The £65m which the Mayor of Larger Manchester, Andy Burnham, had hoped for on Tuesday (which was additionally rejected) would have put it at £23 per particular person for that portion.
There are some variations between areas which may not be accounted for in a per-capita system.
What Covid tier is my space in?
- What cannot you do in Tier 3 areas?
In asking for more cash, Larger Manchester argued that it had an even bigger inhabitants and financial system than Liverpool and Lancashire.
It additionally stated its regionally run transport system was usually a income maker for the town, however would now be much less busy and herald much less cash. The town additionally has a serious regional airport that may want extra help.
The town-region additionally argued that it had confronted restrictions for longer than a lot of the nation, which meant the prices incurred had already been excessive.
Whereas most of Larger Manchester has had some restrictions for the reason that finish of July, Liverpool has solely confronted restrictions since 22 September.
Now we have contacted the Division for Housing, Communities and Native Authorities for extra particulars about its funding system.
What’s the enterprise help cash for?
Native authorities haven’t been clear about precisely what they plan to spend the enterprise help cash on.
Andy Burnham stated he wanted £15m a month in enterprise help from the federal government.
One of many issues he stated he wished to spend this on was topping up the wages of staff of companies that have been pressured to shut, who can be getting lower than 80% of their common revenue.
Till now, the furlough scheme has been paying 80% of the wages of affected staff (as much as a most of £2,500 a month) but it surely finishes on the finish of October. It is being changed by the Job Assist Scheme which can pay 67% of their wages.
A number of the lowest-earning staff may have that topped up by Common Credit score, however some is not going to.
Andy Burnham additionally stated he wished to ensure self-employed folks acquired 80% of their revenue.
The Liverpool area is utilizing a few of the cash to fund a Hospitality and Leisure Assist Grant to high up the cash obtainable from the Job Assist Scheme for affected companies.
Why is that this a difficulty now?
Native lockdowns have been occurring since July, however funding disputes have by no means been this high-profile.
A part of that is more likely to do with the sheer variety of folks affected: from Saturday, 7.3m folks will probably be below tier 3 restrictions.
Earlier than the tiered system, simply two areas – Bolton and Leicester – have been requested to shut components of their hospitality sector.
And through that interval, the extra beneficiant furlough scheme – which noticed staff obtain 80% of their wages – was nonetheless in place.
What are Scotland and Wales doing?
Eating places and pubs in a lot of Scotland are at present closed.
The Scottish authorities has made £40m obtainable for workers and companies in areas below native restrictions as a part of its Covid-19 Restrictions Fund.
This consists of funding of as much as £3,000 for small companies (relying on measurement) and to assist firms struggling to cowl furlough funds.
In Wales, a brand new fund of as much as £60m has been introduced to assist companies affected by native lockdowns and the forthcoming three-week circuit-breaker lockdown.
As a part of the fund, each small enterprise that qualifies will obtain a £1,000 fee. Small and medium-sized retail, leisure and hospitality corporations which have to shut will get a one-off fee of as much as £5,000.
Reporting by Benjamin Butcher, Oliver Barnes and Anthony Reuben
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