Chancellor Rishi Sunak is today expected to announce a new support package for businesses affected by Tier 2 restrictions.
It has been reported that Mr Sunak will unveil a new plan to help firms, particularly pubs and restaurants, who have seen their trade drop as a result of the social restrictions in the 鈥渉igh鈥 Covid-19 category.
Currently businesses in Tier 2 areas such as London, Birmingham and the North East do not benefit from the same Government aid as those in Tier 3, including business grants and higher wage subsidies, because they can remain open.
Mr Sunak will make a statement to the Commons this morning, with reports that he will unveil financial measures to help Tier 2 firms following complaints from industry leaders and MPs that thousands of jobs were at risk ahead of Christmas.
The Chancellor鈥檚 spokesperson told the PA news agency: 鈥淭he Chancellor is due to update the House of Commons on the economic situation, in particular, and so far as it relates to the new restrictions.
鈥淎nd, what we have always said is that 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.鈥
In Tier 3, social mixing is banned both indoors and in private gardens, while pubs and bars must close unless they can operate as a restaurant.
For businesses in this band that are unable to legally operate due to Covid-19 restrictions, the government will pay employees 66% of their wage, with the employer still contributing to pensions and National Insurance.
Meanwhile, companies in Tier 2 can only claim on a scheme where employers have to pay around 55% of staff wages with a smaller subsidy from Government, while still being subject to bans on household mixing indoors.
Greater Manchester mayor Andy Burnham said he would be 鈥渓ooking closely鈥 at the announcement, after he was embroiled in debates with ministers for days over what support businesses in his region should get for their move into the Tier 3.
He said: 鈥淕reater Manchester has been in 鈥榟igh鈥 alert for three months but our hospitality businesses haven鈥檛 had any emergency support.
鈥淲e asked for this to be taken into account in Tier 3 negotiations. The Government refused.鈥
It comes as talks with local leaders in South Yorkshire were branded a 鈥渃harade鈥 as the area was confirmed to move up to Tier 3 this weekend.
Sheffield City Council leader Julie Dore said it was clear Downing Street officials and ministers were 鈥済oing through the motions鈥 in 10 days of negotiations just to 鈥渢ry and prove they were listening鈥.
Ms Dore was speaking after Sheffield City Region mayor Dan Jarvis, who led the discussions, admitted he could not have secured any more cash, saying he 鈥渕oved heaven and earth to secure the maximum amount of resource that we could鈥.
Ms Dore said: 鈥淚 can assure you that Dan has been fighting vociferously for the people of Sheffield and South Yorkshire, just like I have been, because we genuinely thought we were in proper discussions and negotiations.鈥
It is understood talks to move parts of the North East into Tier 3 have been put on hold, but Coventry will be moved from up from the 鈥渕edium鈥 Tier 1 restrictions this weekend, joining other Midlands neighbours in Tier 2 after a rise in cases.
West Midlands mayor Andy Street said the new rules will present a 鈥渟erious economic challenge鈥 and called on central Government to update their support.
He tweeted: 鈥淐urrently, there鈥檚 no extra financial support available for our hospitality sector in Tier 2 which cannot possibly be right.
鈥淚 will continue to press Govt on this & I鈥檓 confident we will get a breakthrough soon.鈥
Wednesday saw the 海角视频 report its highest daily rise in lab-confirmed coronavirus cases since the outbreak began.
The Government announced a further 26,688 lab-confirmed cases of Covid-19 in the 海角视频, taking the total number to 789,229, a jump of more than 5,000 on the 21,330 positive cases confirmed on Tuesday, while a further 191 people died within 28 days of a positive test, meaning the death toll reached 44,158.
