"Unnecessary anxiety for businesses": North East leaders react to local COVID-19 alert levels

The UK Prime Minister Boris Johnson yesterday (October 12) outlined a three-tier alert system for dealing with COVID-19.

The system, comprising ‘medium’, ‘high’ and ‘very high’ levels, will put restrictions on socialising as well as the hospitality sector.

Business leaders from across the North East shared with Bdaily their reactions to the news as well as their priorities for the coming weeks.

Ben Houchen, Tees Valley Mayor

“Following the announcement that local lockdown restrictions will now cover the whole of the Tees Valley, under the government’s new three-tier system, it is absolutely essential that everyone across Teesside, Darlington and Hartlepool follow the rules so that we can get the virus back under control and return to normal as soon as possible.

“Under the new rules local people are banned from meeting anyone they do not live with in their own home or any indoor setting such as pubs or restaurants. So, while it is incredibly difficult I urge everyone to prevent households mixing.

“Up to six people will be able to meet outdoors, including public spaces such as parks, and private gardens.

“To drive down the virus local people are also advised not to travel except for essential reasons, such as getting to work or school.

“By stepping up our fight we can keep as many people as safe as possible from the virus but also make sure our children can keep going to school and businesses which are Covid-secure can remain open.

“If we do not follow these rules our region and our nation will face even stricter restrictions that no one wants to see, restrictions that will have a catastrophic impact on everyone’s livelihoods and physical and mental health.

“It is essential that we do not spend a day longer than necessary under these new restrictions, so we will continue to monitor the data closely and I urge the government to lift the restrictions as soon as it is safe to do so.”

Richard Askew, Federation of Small Businesses (FSB) regional policy representative

“The one thing that smaller businesses need is certainty and they need to be communicated with clearly so they can put plans in place.

“We would like to pay tribute to our members and smaller businesses across the North East who have been working tirelessly to ensure their businesses function in a COVID secure environment. It is now imperative that they are supported to survive these further lockdown restrictions.

“It is crucial that business support measures are put in place in consultation with and in response to local businesses and business need and led by local leaders and stakeholders.

“Support needs to be in place for the businesses and their supply chains, not just the employees, and this can only be done with the benefit of local intelligence and evidence.

“We have consistently highlighted that far too many are still excluded from the Government’s efforts to help business owners – not least company directors and the newly self-employed.

“A rescue package for such groups is urgently needed. Across the North East such measures are paramount as our businesses are put into stricter lockdown measures.

“Poor cash flow and diminishing turnovers are now posing serious threats to businesses, especially those in the hospitality sector.

“Many are going to need a further cash injection to survive a long and lean winter, and a grant scheme like the Small Business Rate Relief package announced at the start of lockdown in March would help the worst affected firms make ends meet.

“Policymakers should now be looking at cross-cutting interventions to spur growth, startups and future job creation as our economy is changed for the long-term.

“As business and entrepreneurs in the North East we have long been challenged to “level-up” the economy, but without support, such aspirations will be impossible and businesses will close. Bringing down Employer National Insurance Contributions and lifting the business rates burden for more small firms would be good places to start.”

Cllr Mary Lanigan, leader of Redcar and Cleveland Borough Council

“We are disappointed that families in Redcar and Cleveland will face further restrictions on their lives. We did not request the additional measures and we are concerned about the effect they will have on people’s mental wellbeing and the risk to jobs and prosperity in our borough.

“Our priority throughout the pandemic has been to keep our residents and visitors safe and to restrict the spread of the virus. Over the past few weeks there has been a very steep rise in the number of confirmed cases in Redcar and Cleveland. This increase is reflected across the Tees Valley and the North East as a whole.

“While the initial surge was caused by infection among younger people, we have seen an increasing number of cases among elderly and vulnerable people. Our colleagues in the NHS are reporting that more people are being admitted to hospital and the increasing number of patients in High Dependency Units is a huge concern.

“We want everybody to be safe, but it is crucial that we all watch out for those who are most vulnerable.

“There has to be a way out of the restrictions and we are lobbying the government to establish clear guidance so we all know at what point we can start to see friends and family once again.

“This will also allow our businesses to plan with confidence and mean jobs will be saved, rather than lost. Not knowing what we have to do to have the restrictions lifted would be hugely damaging to the wellbeing of our residents and the viability of our economy.

“In the meantime, we can all help restrict the virus by keeping our distance, wearing a mask when required and washing our hands regularly.

“These really are the toughest of times and I would like to thank everybody for their efforts to keep our borough safe. We can make a difference if we all work together and I look forward to the day when restrictions are lifted and we can return to normal with a borough which is safe and prosperous for everybody.”

Jonathan Walker, policy director at North East England Chamber of Commerce

“It is welcome news that for the time being businesses in our region are not being closed. However, we are deeply concerned that significant additional support to get on top of this crisis appears to be linked to an agreement to move to Tier 3.

“Government needs to be working with local leaders and providing areas with the resources to prevent them from being escalated to a higher tier. Test and trace is simply not up to the job at the moment and must be rapidly improved.

“Businesses are being put through intolerable and constant pressure about whether they are going to be asked to close at short notice. This is not acceptable.

“They need to be consulted with by national and local government to ensure we all work closely to combat this pandemic. This will also allow us to play our part in getting the important messages out to our local communities.”

Sarah Green, chief executive of NewcastleGateshead Initiative

“[Yesterday’s] announcements leave as many questions as answers, creating unnecessary anxiety for businesses – we need urgent clarity.

“We need central and local government to work together with the private sector to determine the additional measures that the Prime Minister has requested. Working together and providing clarity gives us our best chance of ensuring the region is not escalated to Tier 3.

“We also need to understand the detail around the financial assistance packages announced.

“Whilst it is good news that hospitality and tourism businesses can continue to trade, there needs to be further support for all tourism and hospitality businesses operating on reduced hours and with reduced capacity, recognising that the current furlough scheme finishes at the end of the month.

“The current restrictions are devastating the sector and we are forecasting over a £1bn loss to the economy in Newcastle and Gateshead this year, alongside the loss of 12,000 jobs – action is needed to help businesses through the winter period.

“We wrote to North East MPs on Friday seeking support for immediate measures to assist the hospitality and tourism industry.

“We asked that the evidence base for further changes is shared to ensure all restrictions are proportionate and that there is support for a localised roadmap to ensure the region does not end up in a cycle of loosening and tightening regulation.

“We need a new approach which balances public health needs with that of the economy.”