Rishi Sunak lays out the grants you are entitled to under Tier 2 by Mandeep Rai

 After complaints from industry leaders the Chancellor, Rishi Sunak has revised the financial support package that is being offered to businesses under Tier 2 of the coronavirus restrictions.

Sunak spoke in the House of Commons today,

"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, but we will get through this together. People are not on their own, we have an economic plan that will help the jobs and livelihoods of people wherever they live and whatever their situation. And just as we have throughout this crisis we will listen and respond to people’s concerns as the situation demands. And I make no apology for responding to changing circumstances. And so today we go further.”

Sunak announced three further steps today:

1.     “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 it will be up to local authorities how best to distribute these grants giving them the necessary responsibility to respond to local economic circumstances.” said Sunak

Businesses will be able to get up to £2,100 in the form if they find themselves in Tier 2 coronavirus restrictions. Grants can be backdated to August.  

2.Grant for self-employed has doubled from 20% to 40% of average profits therefore the maximum grant will go up from £1,875 to £3,750.

3.     “A more generous job support scheme for employers”(Sunak). Employer contribution has been reduced from 33% to 5% and the minimum number of hours required to work has been cut as well.

 

 

Sunak has made it clear throughout the pandemic that the Government with make changes as the pandemic develops.

“our package of support is always flexible and always up for review to make sure that it is dealing with the situation as it evolves.” Sunak

When the Policing minister, Kit Malthouse, spoke on Sky News he told Kay Burley that Sunak is “flexing the support that’s required of the economy to make sure that we stay in as best shape as we possibly can.”

Tier 2 businesses have been allowed to stay open and they have been able to apply for support from the Government.

This week, there were tough talks between the Government and the Greater Manchester mayor, Andy Burnham, over the financial support that was made available to them in tier 3. It resulted in £60 million being made available for the area.

Burnham has responded to Sunak’s statement this morning,

“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(Greater Manchester)? I said directly to the PM that a deal was there to be done if it took into account the effects of GM businesses of three months in Tier 2.”