Business leaders have urged the Government to review support packages for firms after new lockdown measures were announced for the North East.
Health Secretary Matt Hancock has announced new measures which will come into force across the North East of England from midnight tonight, Thursday September 17.
Giving a statement in the House of Commons he said action was needed because of a surge in the number of cases of coronavirus.
The measures will include a 10pm curfew for hospitality businesses and a ban on socialising among different households.
Mr Hancock confirmed local lockdown restrictions will be introduced in Northumberland, North Tyneside, South Tyneside, Newcastle-upon-Tyne, Gateshead, Sunderland and County Durham following “concerning rates of infection”.
Council leaders had written to Mr Hancock asking for powers to impose local restrictions in an attempt to reverse the huge spike in coronavirus cases.
Matthew Fell, CBI 海角视频 chief policy director, urged the Government to review support packages for businesses in autumn, in the wake of the new regional measures.
He said: “Businesses in the North East know public health must come first and have been doing all they can to keep staff and customers safe, whether it’s pubs, shops, factories or offices.
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“This news will come as a bitter disappointment for many businesses across the North East, but the Government cannot stand by as infection rates rise in the region.
“Taking action now can help to maintain confidence and avoid further restrictions on businesses and households in the months ahead.
“With the number of new local restrictions on the rise, the Government will need to take an urgent look at the business support packages for the autumn, including a successor to the furlough scheme.”
Simon Hanson, North East development manager at the FSB said the group welcomed the regional approach taken by the seven local authorities across the North East to coordinate the response to the local restrictions that have been announced.
He said: “It’s vital that smaller businesses are supported for as long as these measures are in place across the region. Smaller businesses will need financial support to make the changes needed to be Covid secure and adapt to these new measures.
"It is absolutely critical that we get grant support to small and micro businesses quickly to help them adapt and provide some much needed support for cashflow.”
Residents across all seven boroughs are being told not to socialise with anyone outside of their own household or support bubble - indoors or outdoors.
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New limits imposed on pubs, restaurants and other food and drink premises also mean they are restricted to table service only and leisure and entertainment venues must close between 10pm and 5am.
Debrah Dhugga, the CEO of The Apartment Group, which runs hotels, bars and restaurants in Newcastle, Sunderland and Northumberland, called upon the leisure industry in the region to work with authorities to get the sector back on track, warning further jobs are now at risk.
Her warning comes after Newcastle city centre BID organisation NE1 called for urgent help for the sector, warning that a number of nightclubs – part of the city economy worth £340m a year and employing some 6,500 people – are at risk of collapse.
Mrs Dhugga said: “As the number of cases have been rising rapidly in many parts of the country, but in particular the North East, it is of course important to impose further restrictions. A decision to impose further restrictions was inevitable. We all most work together to get through this crisis.
“Hospitality businesses across the 海角视频 are having to more than ever keep a close eye on our guests and employees wellbeing. These turbulent times are having a negative impact on almost all people who work in hospitality.
“It is critical all hospitality operators work close with the local authorities to keep our regions safe and to try and get the economy back up and running soonest.
“With the 海角视频 Government looking to ease support schemes such as its furlough initiative, we are going to have to be very careful to unwind that in such a way that you don’t tip over, the hospitality industry is in a crisis.
“ The hospitality sector has been particularly exposed to Covid-19, further log lockdown measures will cause further employment risks without any doubt.
“It is critical workplaces should be set up to meet the Covid-19 secure guidelines before operating to keep everyone as safe as possible, while allowing as many people as possible to resume their livelihoods as much as possible.”