Boris Johnson announces £1,000 emergency Covid payment to help pubs

Labour says economic package is ‘nowhere near sufficient’ to support affected communities

‘Wet pubs’ which do not serve food will be given a one-off coronavirus emergency payment of £1,000 in December, Boris Johnson has told the House of Commons.

The cash offer came as the prime minister fought to see off a threatened rebellion by Tory MPs over  the introuction of his new three-tier system for coronavirus restrictions, due to replace lockdown in England on Wednesday.

In the hope of placating backbenchers angry over their constituencies being placed in the tougher tiers 2 or 3, Mr Johnson held out the prospect of a move to lighter restrictions for some areas at a review planned for 16 December.

But the money for pubs was dismissed as “small beer” by Sir Keir Starmer.

And the Labour leader accused Mr Johnson of “pretending” to believe in the possibility of relaxed controls, warning it was it was highly unlikely that there would be any easing of the new system before next year.

The Federation of Small Businesses said the new money was not enough to make a difference to pubs which are “under the cosh” at a time of year when they expect to make a large proportion of their annual profits.

“The proposed funds from the government hardly scratch the surface and we need to see this figure quadrupled at a bare minimum if it is going to have any genuine positive impact for the businesses affected,” said FSB chair Mike Cherry.

“These funds would only cover the cost of a single keg of beer and very little more, which will come as little comfort to pubs who churn out multiple kegs a day during the festive period."

Despite predictions of as many as 70 rebels, Mr Johnson is in no danger of losing the vote on the new system, which is due to come into effect on Wednesday as lockdown ends, because Labour and Liberal Democrats have said they will abstain.

The PM denounced Labour’s decision not to take part in the crunch vote this evening as “extraordinary”.

Mr Johnson accepted that the hospitality sector has “borne a disproportionate share of the burden in this crisis”, with thousands of pubs, restaurants and cafes losing huge amounts of custom.

Vowing to do “everything in our power to support our hospitality sector throughout this crisis”, he said businesses forced to close were already receiving monthly grants of up to £3,000, while those still open but suffering because of reduced demand were getting £2,100.

He told MPs:  “Today, we're going further with a one-off payment of £1,000 in December to wet pubs - that’s pubs that do not serve food - recognising how hard they've been hit by this virus in what is typically their busiest month. We will also work with the hospitality sector in supporting their bounce back next year.”

Under the new system, pubs in the most stringent tier 3  areas - covering more than two-fifths of the population of England - will be closed other than for deliveries or takeaways. In tier 2 areas, which make up 57 per cent of population, they will be allowed to serve drinks only along with a “substantial meal”, forcing those with no eating facilities to close.

Only in the least harsh tier 1 will drinks be served on their own, but this accounts for little more than 1 per cent of the population, covering Cornwall, the Isle of Wight and the Isles of Scilly.

Mr Johnson offered hope to Tory MPs complaining that their constituencies have been caught up in tier 2 or 3 as part of a whole county or region, despite low incidence of Covid locally.

Fortnightly reviews of tiers will take a “granular” approach  responding to “the reality of what is happening on the ground for local people, looking at the incidence of the disease, the human geography of the pandemic and the progress areas are making,” the PM promised.  

“We will try to be as sensitive as possible to local effort and local achievement in bringing the pandemic under control,” said Mr Johnson.

But Sir Keir said the PM was not being frank with the public about the likelihood of areas moving to lower tiers.

“He’s been fuelling a promise that within two weeks or so local areas have a real prospect of dropping to a tier below the one they’re in,” said the Labour leader.

“We need to level: in my view that is highly unlikely and we might as well face that now. It is obvious that the new tier 1 may slow, but it won’t prevent, a rise in infections and it is far from certain that the new tier 2 will hold the rate of infections.”

Sir Keir said it was “obvious to everyone that the previous tiers were a one-way street to tier 3”.

And he warned that the economic package on offer from the government was “nowhere near sufficient to support the communities affected”.

The money on offer for pubs was “the definition of small beer”, he said.

“There’s a pattern here,” said Starmer. "The prime minister’s got a record of over-promising and under-delivering. 

"Short-term decisions that then bump into the harsh reality of the virus, and then a new plan is conjured up a few weeks later – we’re now on at least the fifth – with an even bigger promise that never materialises. 

“After eight months the prime minister should not be surprised that we and many of the British people are far less convinced this time around.”