PM outlines tiered COVID restrictions system as small firms call for ‘right’ guidance

On Monday, Boris Johnson announced new “local COVID alert levels” for England, listed as medium (tier 1), high (tier 2), and very high (tier 3), in an attempt to “simplify and standardise” rules and avoid a new full lockdown.

“This is not how we want to live our lives, but this is the narrow path we have to tread between the social and economic trauma of a full lockdown and the massive human, and indeed economic cost of an uncontained epidemic,” Mr Johnson said. 

Responding to the news, Federation of Small Businesses (FSB) national chairman Mike Cherry said that the new system will mean huge disruption for firms all over England, many of which have borne the brunt of restrictions over the last six months.

"Small businesses that have spent thousands on safety measures for their premises, and made every effort to follow existing guidelines, will now be told to close. Any further restrictions placed on them should be evidence-led – transparency is a must," said Mr Cherry. 

He opined that the tier system will only work if the funding for business support and guidance to accompany it is sufficient, crystal clear and timely, and called for a rescue package for the newly self-employed. 

“Far too many are still excluded from the government’s efforts to help business owners – not least company directors and the newly self-employed," said Mr Cherry. 

“Policymakers should now be looking at cross-cutting interventions to spur growth, start-ups and future job creation as our economy is changed for the long-term. Bringing down Employer National Insurance Contributions and lifting the business rates burden for more small firms would be good places to start.”

Earlier, the Chancellor announced an expansion of the Job Support Scheme (JSS) to protect jobs and support businesses required to close their doors as a result of coronavirus restrictions.

Under the expansion, firms whose premises are legally required to shut for some period over winter as part of local or national restrictions will receive grants to pay the wages of staff who cannot work – protecting jobs and enabling businesses to reopen quickly once restrictions are lifted.

The government will support eligible businesses by paying two-thirds of each employees’ salary (or 67 per cent), up to a maximum of £2,100 a month.

The scheme will begin on 1 November and will be available for six months, with a review point in January.