Businesses call for urgent financial support as millions more people placed under tier 3 restrictions

Theatres and pubs to close across London and parts of Essex and Hertfordshire

Businesses have called for urgent financial support after the government announced that millions more people would be placed under tier 3 coronavirus restrictions this week.

From Wednesday, Greater London, as well as parts of Essex and Hertfordshire will join regions including Newcastle, Manchester and Birmingham under "very high" alert, taking the total number of people in England living in tier 3 areas to 34 million.

Matt Hancock told the House of Commons that the move was essential following a sharp rise in Covid-19 across the capital and the identification of a new variant of the virus.

It means thousands of pubs, restaurants and cafes must close except for takeaways. Theatres, cinemas and music venues must also shut. 

London mayor Sadiq Khan led the calls for more help to keep businesses afloat, warning that moving the capital to tier 3 would have “catastrophic” economic impact and “put hundreds of thousands of livelihoods at stake”.

The London Chamber of Commerce and Industry (LCCI) demanded "sufficient and immediate" support.  

"This must include, as a minimum, instant cash support to enterprises in hospitality and leisure, and extension of the business rates holiday into the next financial year," said Richard Burge, chief executive of the LCCI.

That would help businesses on the high street to plan their outgoings and limit the damage caused, he said.

"Vaccination rollout is perhaps unlikely to equate to economic benefit until well into the next financial year," Mr Burge added

“There must also be a clear government plan with London’s councils for the rollout of widescale testing in the capital, and provide sufficient support for those who have to self-isolate, not least the self-employed and sole traders.  Only then will we see the number of cases come down with the Christmas lights.”

The Theatres Trust labelled the government’s move a “disaster”.

“Theatres have worked incredibly hard to create safe environments for audiences and through no fault of their own will now face enormous financial losses," said the trust's director, Jon Morgan.  

“They have done so at great risk as it is currently impossible to secure production insurance.”

He added: “The tiers system means more uncertainty and risk for months to come unless there is a government-backed insurance scheme for theatre production like there is currently for film and television.

“It has been a catastrophic year for theatre and today's announcement has compounded that.”

The UK Cinema Association (UKCA) said the move would be “devastating” for its members. 

“Like those in the rest of the country, cinemas in the capital have worked extraordinarily hard to safeguard audiences and staff alike. It is worth stating again that as a result not a single case of Covid has been traced back to a UK cinema,” said Phil Clapp, chief executive of the UCKA.

“Yet those sites will be required to close when non-essential retail – where safeguarding measures are undoubtedly less exacting – will be allowed to remain open.”

Nick Mackenzie, chief executive of one of the UK's largest brewery and pub chains, Greene King, said the hospitality industry was in "dire straits" with pubs seeing far fewer customers than normal, even after restrictions were lifted earlier this month.

“Once again the government has acknowledged hospitality is bearing the brunt of new restrictions to help control the virus but with no extra support to help businesses survive," he said.

“Whilst we understand the need to manage the rate of infections, there is no getting away from the fact that moving London and other areas into tier 3 the week before Christmas will further cripple the pub sector, which is already on its knees and impact on the livelihoods of our team members and tenants.

"This week would normally be a bumper week for pubs in the capital, instead, many will have to close their doors yet again, despite a significant amount of investment to ensure safe socialising."