Rishi Sunak unveils extra £2,100 grants for struggling bars & restaurants in Tier 2

RISHI Sunak has unveiled huge grants of £2,100 for 150,000 businesses struggling to cope with extra lockdown measures.

Firms hardest hit by tough Tier 2 rules will be able to get their hands on more cash to help them through "difficult days and weeks ahead" - and they will be able to claim them retrospectively.

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Mr Sunak said this lunchtime: "People need to know this is not forever. These are temporary restrictions to help control the spread of the virus.

"There are difficult days and weeks ahead.

"It is clear that even businesses who can stay open are facing profound economic uncertainty.

"I am introducing a new grant scheme for businesses impacted by Tier 2 restrictions, even if they aren't legally closed.

"We will fund local authorities to provide businesses in their area with direct cash grants."

Mr Sunak announced today hospitality, accommodation and leisure businesses will be able to access up to £2,100 for every month they are in Tier 2 restrictions.

And businesses will also be able to claim the aid retrospectively if they have had to suffer through restrictions similar to Tier 2 since August.

What Rishi Sunak announced today:

• Job Support Scheme made more generous
• Workers must work min 20% of hours to get JSS
• Businesses will pay just 5% of wages
• Grants for self-employed upto £3,750
• New grants for businesses in high-alert area

The announcement is a massive peace offering to huge swathes of the country - especially Manchester and the North East - who have had to grapple with more than three months of local lockdown restrictions, without extra financial aid.

Greater Manchester Mayor Andy Burnham lashed out at the Government this morning for not pledging extra help until London was thrown into Tier 2 restrictions.

Mr Burnham sledged the Government for not announcing the measures sooner, saying he was "open mouthed" by the news Mr Sunak would deliver extra help.

He wrote on Twitter following Mr Sunak's announcement: "Honestly, can barely believe what I’m reading here.

"Why on earth was this not put on the table on Tuesday to reach an agreement with us? I said directly to the PM that a deal was there to be done if it took into account the effects on GM businesses of three months in Tier 2."

Those who are forced to close because of their area has been thrown into the "very high" Covid alert level are already able to claim up to £3,000 a month from the Government.

Smaller businesses are eligible for £1,300 a month if they are forced to close in Tier 3.

And Mr Sunak announced an extra furlough scheme this morning, meaning Brit will get even more of their wages topped up out of the Exchequer's coffers.

It means the current scheme which pays staff two third of their wages if businesses are forced to close in Tier 3 will be extended across the country.

Any business across the country which is still open will be able to get a similar amount - and they only need to work 20 per cent of their hours.

Head of research at the think tank the Adam Smith Institute Matthew Lesh said the extra funding was necessary because the "failure of the Government's test, trace and isolate regime has led to renewed restrictions."

And he warned: "This is, of course, hugely costly and will add mountains to the debt."

But he said it mean less businesses would sink and jobs in crucial parts of the economy could be saved.

Mr Sunak has previously warned taxes could be hiked to pay for the extra coronavirus measures.

In response to fresh data from the ONS laying bare the £2trillion national debt, the Chancellor said: "Over time and as the economy recovers, the government will take the necessary steps to ensure the long-term health of the public finances.”