Areas with Additional Public Health Restrictions: Economic Support

Lord Stevenson of Balmacara Excerpts

Wednesday 7th October 2020 Lords Chamber

[Lord Stevenson of Balmacara (Lab) [V]]

My Lords, one-quarter of the population are now living under additional local restrictions. People are trying their very best to abide by the rules and guidelines, but have to do so in the face of senior Ministers misspeaking on crucial points of detail, contradictory policy initiatives, particularly in relation to homeworking and in the hospitality and events sectors, gaps in economic support schemes, leaving our creative industries and others on the brink of survival and accused of being unviable jobs, and serious shortcomings in what was supposed to be a world-leading test, trace and isolate system. To that list we can now add the lack of meaningful engagement with local leaders over the introduction of new restrictions, and late and inconsistent decisions on support for local authorities enforcing restrictions and for the businesses and jobs put at risk by them.

In recent days, we have seen packages worth £3 million for Leicester, £7 million for Liverpool City Region, an undefined amount for the north-east of England and nothing for Greater Manchester or the West Midlands. So, what criteria determine the allocation of support to areas under local restrictions? Will they be published? If not, why not? When can we expect a sector-by-sector plan to protect jobs and rebuild businesses?

[Baroness Penn (Con)]

My Lords, taking those two questions in turn, I have to disagree with the noble Lord on the issue of funding. Greater Manchester has received £2 million in surge funding for test and trace, out of a £100 million pot. A £300 million pot has been provided to local authorities across England to fund local test and trace responses, while those affected by local lockdowns can bid into the £100 million pot. That is in addition to the extra grant funding of £3.7 billion that has gone to all local authorities.

There is then the economic support. There are two main components to the economic support that comes with local lockdowns. If areas have businesses that have been forced to close, the local authority has received funding to provide grants to those businesses of either £1,500 or £1,000 every three weeks, depending on the size of the business. Then there is the support for self-isolation payment, which is funding provided by central government to local government to deliver for those who have received a positive result from test and trace, have been asked to self-isolate and are on low incomes.