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Economic Development

North East business leader warns on need for more support as restrictions increase

North East England Chamber of Commerce joins other chambers in saying Government needs to meet five tests in the event of tighter lockdowns

People sit at an open air pub next to the River Tyne as new restrictions are imposed in the North East(Image: Getty Images)

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.