Labour has criticised the government for “short-changing businesses and communities across the North” as the vast majority of businesses in areas under Tier 2 and Tier 3 Covid restrictions will receive insufficient or no government support.
Newly published party analysis has highlighted that small businesses forced to shut under the most severe level of Covid-19 measures will receive at most £500 a week of funding from local restrictions support grants.
As a result of changes to government financial aid announced by the Chancellor, this is significantly less than the average £1,666 a week that the same companies received in similar state support during the initial lockdown earlier this year.
The grants are only offered to businesses legally forced to close, which means those in Tier 2 areas are not eligible for any support despite facing massive falls in revenue due to the tough social distancing measures being imposed.
Commenting on the results of the new analysis from Labour, shadow business minister Lucy Powell said: “The government is short-changing businesses and communities across the North.