Boris Johnson urged to increase business support to prevent ‘economic catastrophe’

Boris Johnson urged to increase business support to prevent ‘economic catastrophe’ - Blogs·2020-10-18 23:55

Business have called for more support (Picture: PA/AFP)

The current economic support packages will not be enough to prevent mass redundancies and business closures during the Covid-19 crisis, bosses have warned the Prime Minister.

The British Chambers of Commerce told Boris Johnson any new lockdown restrictions must come with ‘truly commensurate’ financial support or risk ‘catastrophic economic consequences’.

In a letter to Johnson, they raised particular concern about the tier two restrictions imposed on London and other areas on Saturday because they said they ‘dramatically’ hamper businesses without extra support.

The chambers added the Job Support Scheme, which sees the Treasury pay two-thirds of workers’ wages in businesses told to shut in tier three, will ‘assist some firms’ but companies they represent said it will not be enough and called for ‘enhanced support’.

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‘Chambers are clear that any new restrictions must go hand in hand with truly commensurate financial support for wages and day-to-day running costs,’ it said.

Shuttered shops in Ancoats, northern Manchester (Picture: Getty)

The chambers set five tests to prevent economic disaster, including restrictions being evidence-based, and ensuring firms have time to prepare and have adequate compensation.


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