Existing economic support packages will not be enough to stave off mass redundancies and business failures during the coronavirus crisis, business groups have warned.
The North East England Chamber of Commerce has joined chambers from around the country to warn Prime Minister Boris Johnson that any new lockdown restrictions must come with “truly commensurate” financial support or risk “catastrophic economic consequences”.
The North East has so far escaped moves to put it in the highest Tier 3 level of restrictions, but the current levels are hampering many businesses and tighter restrictions could be imposed at the end of this week.
The Government said all restrictions “are guided by the science” in order to bring down transmission rates and stressed that it had introduced a £200bn support package.
But the chambers say current support on offer to businesses “will not be enough to stave off mass redundancies and business failures”.
They have set five tests to prevent economic disaster, including restrictions being evidence-based, and ensuring firms have time to prepare and have adequate compensation.
They also call for the Test and Trace system to be “significantly” improved and for a “clear process” for altering restrictions.
James Ramsbotham, chief executive of the North East England Chamber of Commerce said: “No one understand business better than business people so we need to be consulted and we have, in these five questions, put forward the priority issues that need to be addressed.
Most Read
“Ultimately all of this support has to be paid for and it is only businesses who create wealth that pays tax (and wages on which tax is paid) so that the Government can pay its people and give us a health system, education provision and all our other important services.
“This is not a debate about health v business – we absolutely have to ensure we do the very best for both.
“Many businesses’ Covid secure arrangements mean that they are the very safest places for their customers and staff. We need much more granular data on where the transmission of Covid is actually taking place and end this shooting in the dark.”
A Government spokeswoman said: “Our expanded Job Support Scheme will protect jobs in businesses that are closed or facing challenges, we’ve increased grants for firms required to close and are providing additional funding for local authorities and devolved administrations.
“This is alongside existing support measures including extended VAT cuts, businesses rates holidays and our extended loan schemes.”
But Shadow business secretary Ed Miliband said that firms “across the country are sounding the alarm”.
“The so-called Job Support Scheme won’t work for many, the grants available to businesses are a fraction of what was provided in March, and firms severely affected by restrictions but not legally closed are being left high and dry.
Don’t miss
“Public health measures must go hand in hand with the necessary economic support. Business is clear that the Government’s sink or swim mentality isn’t working.
“To prevent business failures and massive redundancies, the Government must get the message and provide the support commensurate with the scale of the economic emergency.”