Rishi Sunak is set to make an announcement today on how to support thousands of businesses that are expected to be shut in parts of northern England.
The Chancellor is expected to give an update this afternoon on how to support businesses through the months ahead.
It comes as pubs and restaurants in some northern cities are expected to be shut as they are put in the highest tier of a new “three-tier” local lockdown system.
The system is due to be announced on Monday and would go further than current local lockdowns for the worst-hit cities.
A Treasury source said the Chancellor will be “setting out the next stage of the Job Support scheme later today”.
The source said it will “will protect jobs and provide a safety net for those businesses that may have to close in the coming weeks and months.”
Reports suggest the new scheme will support two thirds of workers’ wages in areas where their businesses are required to close.
It comes after the government cut support from 80% at the peak of the furlough to just 22% of wages from November 1.
Industry chiefs had warned the change would cost more than half a million hospitality jobs between now and Christmas – as it requires firms to contribute 55% of wages for a worker on just a third of their normal hours.
According to the Times, the new “local furlough” scheme will remain in place for as long as firms are locked down.
While more generous than the current Job Support Scheme from November 1, it still falls short of furlough which handed workers 80% of their wages and didn’t need firms to pay.
An announcement about a new ‘three-tier’ local lockdown system is only expected on Monday, despite new cases surging 56% in a week and the infection rate almost doubling.
Now freshly leaked plans suggest changes will only actually take effect next Wednesday, according to the Nottingham Post.
Reports suggest Tier 1 will be the current national restrictions for non-lockdown areas in England, including the ‘rule of six’ and 10pm pub curfew.
Tier 2 would be the restrictions currently on local lockdown areas – all the restrictions in Tier 1, but with a ban on people from different households mixing indoors.
And Tier 3 would go further than current local lockdown rules – comprising all the restrictions in Tier 2, plus pubs, restaurants and other hospitality will be shut.
It is not clear if pubs would be shut entirely, like in Scotland’s central belt, or if they could be severely curtailed. In the rest of Scotland pubs can open until 6pm and only serve alcohol outside.
