Andy Burnham responds to Rishi Sunak's new measures for businesses in Tier 2

The Chancellor, Rishi Sunak, has unveiled three extra support measures for businesses affected by Tier 2.

Speaking in the House of Commons, he said cash grants of up to £2,100 a month will be given to firms in Tier 2 areas - enough for all affected hospitality, accommodation and leisure premises.

It's part of his vow to "go further" to help workers and businesses get through the winter and a coronavirus second spike.

They will be retrospective, so any region which has been under enhanced restrictions can backdate their claim to August.

Andy Burnham has asked why this wasn't on the table earlier in the week when talks between the leaders in Greater Manchester and the government were underway to secure a deal for the region before heading into Tier 3.

In a tweet Mr Burnham said he could "barely believe" what he was reading and that he said that he told the Prime Minister that "a deal was there to be done if it took into account the effects on GM businesses of three months in Tier 2".

For self-employed people, the size of the grant they can access will also be doubled to £3,750 - with the amount of average profits they can claim for rising from 20% to 40%.

And there will be changes to the Job Support Scheme, which is for companies experiencing lower demand due to the COVID-19 outbreak.

Employees will only need to work 20% of their normal hours - instead of the original 33% - to be eligible.

And the government will significantly reduce the amount employers have to contribute - from 33% to 5%.

Rishi Sunak said:

"The scheme will apply to eligible businesses in all alert levels

"So businesses that are not closed but face higher restrictions - in places like Liverpool, Lancashire, South Yorkshire and Greater Manchester as well as the devolved nations - will be able to access greater support."

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

He continued: "This is our plan. A plan for jobs, for businesses, for the regions, for the economy, for the country. A plan to support the British people."

Sir Richard Leese, leader of Manchester City Council, tweeted: "Looks like Rishi Sunak is agreeing with Greater Manchester Leaders. Pity he couldn't have done it two weeks ago."

And Liverpool City Region mayor said: "It's a shame that it took London coming under further measures for the chancellor to take action to support jobs and businesses."

Though the moves were welcomed by Dame Carolyn Fairbairn, chair of the Confederation of British Industry.

She said they would "do even more to protect people's livelihoods" and that firms will be "relieved to see that anomaly" of hospitality firms in Tier 2 which were getting "little extra support" coming to an end.

"This is a big step towards a more standardised approach of support for areas going into Tiers 2 and 3 and those businesses that face tough times who operate within them," she added.

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