Pubs plunged into deeper crisis as Tier 3 rules continue
Regional leaders have called for more financial support to prevent pub closures and mass redundancies in the New Year.
The Black Country and Staffordshire will remain under Tier 3 restrictions until at least January 30, meaning pubs and restaurants can only open for takeaway and deliveries.
Politicians and business leaders have warned that the impact on the hospitality industry could be disastrous unless beefed up economic support is brought in.
It came as Rishi Sunak announced the furlough scheme has been extended for one month until the end of April.
Black Country Chamber of Commerce chief executive, Corin Crane, said: "Tier 3 means more disappointment for our business communities, and especially our hospitality industry, who are already suffering from reduced demand and cash flow.
“Whilst we have to be guided by the science, and everyone’s health must be of paramount importance, the economic health of our business community is once again taking another hit during this crucial Christmas trading period.
“The vaccine programme is a step in the right direction. We will continue to be there to help and support our members and businesses across the Black Country, whilst continuing to lobby for financial support for sectors to avoid mass redundancies and further business failures."
Currently, businesses in Tier 3 can access grants of £3,000, while ministers are reportedly planning to extend loan schemes to help struggling firms.
West Midlands Mayor Andy Street said: "We need to keep up the immense sacrifice and hard work, turn the trajectory around, and leave the Government no choice in future reviews.
"I will continue to press the argument for further financial support. A £3,000 grant is simply not sufficient to keep businesses afloat, and the Government must address this – particularly for the hospitality and live events sectors – to protect viable businesses and jobs."
Dudley Council leader Patrick Harley said: “Ministers need to urgently look at a package for hospitality that matches what we had in the spring.
'Spectacularly inadequate'
"It is affordable, because where as before they were handing out grants to all businesses that were closed, it is now just hospitality that is being hit.”
Henrietta Brealey, from the Greater Birmingham Chambers of Commerce, said current levels of financial support were “spectacularly inadequate” and did not even cover rent for many businesses.
She warned the restrictions could stay in place for longer should the relaxation of household mixing rules over Christmas lead to a spike in cases in the New Year, and called for an urgent increase in support for the hospitality industry.
“If we lose these businesses, it will take years for them, and the communities they employ serve and contribute to, to recover,” she said.
Health Secretary Matt Hancock said “no-one wants tougher restrictions any longer than necessary”, but they were required due to rising cases and a spike in Covid deaths.
He said: “We’ve come so far, we mustn’t blow it now.”
