The CBI has called for a standardised system of support for areas and businesses moving into tier 2 or 3 Covid restrictions.
CBI director-general Dame Carolyn Fairbairn said businesses should be supported “from the moment restrictions come into force”, Calling for national unity, she said that separate negotiations with each area of the country were “completely wrong” and wasted vital time. She added that trust “urgently needs rebuilding” in some areas.
The move came after negotiations over a support package for Greater Manchester broke down on Tuesday, and confirmation that South Yorkshire would come under tier 3 from Saturday.
Fairbairn said: “Business is suffering badly from lack of clarity and delayed timing on financial support through lockdown. Support must be made available from the moment any restrictions come into force and be commensurate with their impact.
“Trust between central and local government is fundamental to making lockdowns work. While trust is high in some parts of the country, in others it urgently needs rebuilding.
“With tighter restrictions closing in on many parts of the country, it is completely wrong to make each one its own negotiation. This just wastes vital time and erodes unity. The Government urgently needs to move to a more standardised system of support for areas and businesses moving into tiers 2 or 3, with buy-in across all regions.”
She added that local authorities should receive additional funds so they can target grants to businesses and others most in need, and the government’s contribution to the new Job Support Scheme should be increased to protect jobs, especially in areas where firms are seeing demand fall away.
She concluded: “Now is the time to press the reset button. National unity is the only way to defeat the virus and protect our economy.”