Starmer accuses Government of abandoning the North over Tier 3 support

Keir Starmer today accused the Conservative Government of “once again abandoning the North” as analysis found Tier 3 areas in the North West are set to miss out on millions of pounds from a key business support grant.

Starmer will hold virtual visits and meetings with North West businesses today, as well as a ‘Call Keir’ virtual public meeting with voters in the Tier 3 Morecambe and Lancaster area.

Ahead of the visit, Labour’s analysis revealed that businesses in Tier 3 areas in the region are set to lose out by more than £5 million if the Government fails to extend the £20-per-head Additional Restrictions Grant (ARG) for areas going back into Tier 3 from Thursday.

The unfair allocation of the grant was laid bare today, with Tier 3 areas expected to stretch their one-off fund for weeks longer than areas with lower restrictions.

The weekly value of the fund will drop across every Tier 3 area,includingManchester where the weekly value of support will fall by £678,000
Wigan, where the weekly value of support will fall by £403,000 and Stockport, where the weekly value of support will fall by £360,000

Bolton, will see the weekly value of support fall by £352,000

Tier 1 areas such as Isle of Wight received the same £20-per-head ARG package – for just 28 days of national lockdown – as North West areas now facing weeks in Tier 3, where many businesses are forced to close or will see takings severely hit. Parts of the North West will be hit particularly hard after already spending weeks in Tier 3 before national lockdown.

Lancashire entered Tier 3 on 19th October and will have spent 45 days in the highest restrictions by the end of lockdown, with the same £20 per-head ARG funding. If Lancashire remains in Tier 3 until Christmas, their ARG fund will have to stretch for more than 9 weeks, compared to just 4 weeks in the Isle of Wight.

Describing the regional discrepancy as “grossly unfair” Starmer today repeated Labour’s call for the ARG fund to be extended for Tier 3 areas in the North West, and for support to be paid retrospectively to areas like Lancashire and Greater Manchester which have already spent weeks in Tier 3 without extra support.

Keir Starmer said:

“People across the North West will feel a deep sense of unfairness looking at these figures. The Conservatives are once again abandoning the North.

“Good businesses in the North West have faced months of closures and disruptions. Now, as they face further restrictions, the Conservative Government is failing to give them the support they need and increasing the North-South divide.

“Labour is clear that any restrictions must come hand in hand with economic support. Unless the Chancellor acts quickly, Tier 3 areas will be stretched to breaking point, with good jobs and good businesses suffering.”