Regions set to miss out on millions from key business support

The Labour Party has claimed that Tier 3 communities in North and Midlands set to miss out on millions from key business support grant in run up to Christmas.

According to Labour’s analysis, the weekly value of the crucial Additional Restrictions Grant (ARG) is set to fall by millions between the end of national lockdown and Christmas.

Local authorities in the highest restrictions – predominantly in the North of England and Midlands – set to miss out include: Birmingham, where the weekly value of support will fall by £2.4 million; Leeds, where the weekly value of support will fall by £1.7 million; County Durham, where the weekly value of support will fall by £1.3 million; and Manchester where the weekly value of support will fall by £678,000.

Shadow Chancellor Anneliese Dodds is warning that Tier 3 communities will be ‘stretched to breaking point’ after the government refused to renew the one-off fund, which was paid to local areas either when they entered Tier 3 restrictions or the later national lockdown. Tier 1 areas received the same £20-per-head ARG package – for just 28 days of national lockdown – as areas now facing weeks in Tier 3, where many businesses are forced to close or will see takings severely hit.

Without additional funding, and with swathes of the Midlands and North set to move into Tier 3 after lockdown, Dodds believes that ‘a gulf in support’ is opening up across the country.

She said: “It is completely irresponsible for the government to leave Tier 3 areas in the lurch like this again. The run-up to Christmas is a critical period, and local authorities are going to be stretched to breaking point trying to help.

“The government’s approach is fundamentally unfair and risks a gulf in support opening up across the country. The Chancellor must make the responsible choice and come forward with a clear system of business support for the hardest-hit areas.”