Chancellor Rushi Sunak announced Tier 2 coronavirus support

The news comes less than 24 hours after Essex business leaders joined the county council in calling for additional support.

Last week Essex County Council called to bed place into the ‘high’ alert – Tier 2 – of the Government’s new Covid-19 banding strategy.

The Government complied, and from Saturday new rules came into force banning household mixing indoors – meaning friends and family who did not live together could no longer meet at pubs, restaurants and cafes.

County council leaders and business leaders yesterday wrote to the Government calling for financial support for the sectors worst affected by the new rules.

Essex County Council’s Cabinet Member for Economic Growth, Cllr Tony Ball said: “We understand the added pressure that moving into High local Covid alert has placed on local businesses and we want to act to address this.

“By reaching out to the Government, we want to engage Ministers positively on measures which would offer real support to businesses though what everyone recognises are very difficult circumstances. We think our asks are reasonable and right for businesses across the county.”

Today, Chancellor Rish Sunak announced billions of pounds of extra help for firms and workers hit by the restrictions.

The package includes making the Job Support Scheme, which replaces the current furlough system, more generous.

There will also be grants of £2,100 available for firms in Tier 2 areas of England, primarily aimed at helping hospitality and leisure venues.

In a move which could be worth more than £1 billion, these grants will also be available retrospectively for areas which have already been subject to restrictions, and come on top of higher levels of additional business support for areas moving into Tier 3.

Mr Sunak said: “I’ve always said that we must be ready to adapt our financial support as the situation evolves, and that is what we are doing today.

“These changes mean that our support will reach many more people and protect many more jobs.

“I know that the introduction of further restrictions has left many people worried for themselves, their families and communities.

“I hope the Government’s stepped-up support can be part of the country pulling together in the coming months.”

Explaining why he has been forced to introduce extra measures just weeks after setting out his Winter Economy Plan, Mr Sunak told MPs that even businesses which can stay open are facing “profound economic uncertainty”.

The Chancellor said hospitality industry chiefs have given a clear message that “the impact of the health restrictions on their businesses is worse than they hoped”.

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