ENTERTAINMENT

The Ministry of Finance has announced a rescue operation for companies in Tier 2 areas


Is Rishi about to announce a second stage bailout? The Treasury Department has insisted that business evolve and fully support the backlash from pubs and restaurants, as the Chancellor is “very aware” of the financial costs of these companies

  • Chancellor Rishi Sunak is under pressure to bring more help to the business
  • Additional aid has been promised for companies in Tier 3 areas that need to close
  • Growing concerns for Tier 2 businesses with no support but fewer customers
  • Ministers said today the support program is "advanced and comprehensive".

The ministers sparked speculation today. Rishi Sunak could soon announce a bailout for companies that are only open on behalf of coronavirus second-tier rules.

The government has pledged additional financial support for pubs, bars and restaurants that have to close in Tier 3 areas.

However, there are growing concerns about businesses in tier two parts of the country that will not need to close but have seen massive customer declines due to household mix restrictions.

Treasury Secretary Jesse Norman told the House of Commons the government was "very aware" of the financial cost of these Tier 2 companies.

And on a possible hint that more help may come, he said the current business support program is "evolving and comprehensive".

Chancellor Rishi Sunak is under pressure to increase support for companies in tier 2 areas that are "only open in name".

The subject was raised in the House of Commons today by Abena Oppong-Asare, Labor Party's shadow finance minister.

Ms. Oppong-Asare told MPs: “In regions with Tier 3 restrictions, many companies have had to close.

& # 39; In tier two regions, many companies, especially in the hospitality industry, are only open by name – and bear all costs without the customers.

"What does the government say to those companies that cannot realistically operate and are not legally required to close?"

Mr. Norman replied: “The answer to the question (Ms. Oppong-Asare) is of course that we are well aware of the financial cost of these companies as we are companies that have been forced to close.

"That's why we've put in place an evolving and comprehensive business support program."

Mr Sunak announced earlier this month that the government's Job Support Scheme, which is set to replace the vacation program, will be expanded to support businesses that are forced to close due to local coronavirus restrictions.

The Treasury Department has the committee to pay two-thirds of the salaries of workers in the affected areas, while cash grants of up to £ 3,000 per month are offered to companies requested to close.

Forced closure of pubs, bars and restaurants is reserved for the third tier areas – the highest tier of restrictions.

However, many companies in tier 2 areas feel in limbo because, while they are technically allowed to remain open, other rules mean that customer numbers have decreased significantly.

Tier Two includes an outright ban on indoor mixing, but they can mix outdoors, even in pub gardens, as long as they stick to the rule of six.

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