Rishi Sunak gives lifeline to businesses in Tier 2 and the self-employed with new funds

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Rishi Sunak said the Government has been listening to businesses taking the brunt of the coronavirus restrictions as he made the announcement. The Chancellor said the new scheme will be available to all businesses including those not forced to close under the tier system. He insisted the scheme will provide owners with additional “flexibility” as he confirmed the grants will be retrospective.

Mr Sunak said: “I’m taking three further steps today.

“First, I’m 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. It will be up to local authorities to decide how best to distribute these grants, giving them the necessary flexibility to respond to local economic circumstances.

“But I’m providing enough funding to give every business premises in the hospitality, leisure and accommodation sector a direct grant worth up to £2,100 for every month tier 2 restrictions apply.

“That’s equivalent to 70 percent of the value of the grants available for closed businesses in tier 3. And, crucially, I’m pleased these grants will be retrospective. Businesses in any area which has been under enhanced restrictions can backdate their grants to August.”

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Mr Sunak also confirmed the Government will be making the job support scheme launched last month “more generous”.

The Chancellor said the changes will allow employees to keep paying their workers in spite of the lower demand for services, keeping them on staff instead of forcing them to opt for mass redundances.

More to follow…

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