'Businesses tell me its unsustainble to carry on in Tier 2 without economic support' - South Yorkshire mayor

The mayor said there is currently a gap which ‘needs to be bridged’ due to the increased restrictions and the lack of economic support.

Mayor Jarvis said businesses being forced to close in Tier 3 receive compensation but there is currently nothing for South Yorkshire in Tier 2 against a backdrop of a further downturn in trade.

The mayor also said that some business owners had told him that the current restrictions in Tier 2 ‘doesn’t make it sustainable’ for them to continue to trade.

A so-called ‘Local Lockdown Lifeline’ plan was presented to Government by Mr Jarvis with the agreement of the four council leaders.

It’s focused on helping businesses and resources to improve testing capacity in the region. South Yorkshire leaders are set to speak with Downing Street at the weekend to hear back on their proposal.

When asked how much the city region has requested, Mayor Jarvis said: “We’ve not costed it in terms of adding it all up - it’s a negotiation at the moment. We’re talking to Government about what they can do to support our economy.

“These new restrictions severely impact the ability of our businesses to trade in a way they work previously.

“We’ve worked with all the councils to pull together a basic list of asks - this sits now with Government.

“This is a wide package of support which is not just economic - some of it includes more resources to support councils and additional testing capacity in South Yorkshire.

“We’ve also put in specific proposals around the eligibility criteria in raising the threshold for the self-isolation payment - it’s a range of measures and some things which the Government can do relatively easily.

“What we’ve tried to do is make the point that with the restrictions that Tier 2 brings, it needs to sit alongside additional support to make them work and that’s the case we’ve made.”

In terms of a public health perspective, the mayor also thinks the measures don’t go far enough.

Sheffield Council’s director of public health Greg Fell, has already admitted the city could find itself in Tier 3 in a matter of weeks.

Council areas on medium alert (Tier 1) are subject to the national restrictions currently in force, including the rule of six on indoor and outdoor gatherings and the 10pm closing time for pubs and restaurants.

In addition to these restrictions, in areas in Tier 2 or high alert -including South Yorkshire - different households are not allowed to mix indoors.

Areas on very high alert (Tier 3) face extra curbs, with different households banned from mixing indoors or outdoors in hospitality venues or private gardens.

The Tier system was announced on Monday, October 12, and came into force on Wednesday, October 14.

Speaking as he made the announcement, Prime Minister Boris Johnson said: “We are entering a new and crucial phase of our fight against coronavirus. Because the number of cases has gone up four times in four weeks and it is once again spreading among the elderly and vulnerable.

“There are already more Covid-19 patients in UK hospitals today than there were on 23 March when the whole country went into lockdown, and deaths, alas, are also rising once again.

“These figures are flashing at us like dashboard warnings in a passenger jet. And we must act now.”

Commenting on other funding streams in the region, Mayor Jarvis said long-awaited money from the drawn-out wrangling over devolution has finally arrived but restrictions on how that money can be spent is holding the region back in its fight against Covid-19.

If devolved money was reclassified, Mayor Jarvis said this would be a ‘quick win’ for Government and the region.

“We are now in control of gainshare funding (devolved money) but this is ring fenced for revenue and capital,” he said.

“If Government allowed us to reclassify some of the revenue element of that, then that would enable us to unlock more resources at a local level.

“I can’t change that but if Government want to help us out, then they can be flexible from revenue to capital. This would be a simple yet effective measure for us to draw on or own resources to invest them in our economy for the wider benefit.”

If the request for economic support is granted, Mayor Jarvis said this would be handed to each of the four councils to determine where the money goes but he added that Government would ‘likely include restrictions’ on what the money can be spent on.

“We’ve entered into an agreement to be in Tier 2 everyone in South Yorkshire (councils) agreed that but as part of that process the region’s leaders put forward a proposal in order to make it work here locally,” Mayor Jarvis added.

“We’re doing our bit, but we need Government to step up and do their bit now, this is a pivotal moment.

“There is a gap in the sense of the restrictions and the impact on our economy but without the monetary support to compensate for that.

“Whereas if you’re in Tier 3, then businesses are forced to close but a compensation package is available. We don’t have that and this is the negotiation that we’re in.”

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