Fury as government rules out extra cash for city’s businesses
LEICESTER IS BEING HUNG OUT TO DRY, RAGES LABOUR MP KENDALL
THE government has said there will be no special financial support package to help businesses in Leicester during local lockdown.
There have been warnings that hundreds of shops, pubs and restaurants, unable to open because of tighter restrictions imposed on the city, could be on the brink of failure without extra cash to prop them up.
But the government has now said no extra measures will be put in place to support them during the lockdown, which will last until at least July 18.
Leicester West MP Liz Kendall has been pressing the case on behalf of businesses on the brink, but has received a letter from Nadhim Zahawi, minister for business and industry at the Department of Business, Energy and Industrial Strategy.
Mr Zahawi outlined support already offered to city firms and said he hoped the lockdown would soon be lifted.
But he added: “The Chancellor has already said there are no plans to change the scope or extend any of the schemes currently available”.
THE two city MPs’ criticisms came as Chancellor Rishi Sunak’s delivered a summer “minibudget” yesterday, announcing a series of measures designed to help the UK economy recover from the impact of the coronavirus pandemic.
These include a one-off £1,000 “job retention bonus” payment to employers for every furloughed employee retained to the end of January and a six-month VAT cut for restaurants, hotels and
Describing it as a slap in the face for businesses in the lockdown zone, Labour MP Ms Kendall said: “The government is hanging the city out to dry.
“This is totally unacceptable. “We have no idea when we are going to come out of this lockdown, but the government has now confirmed there will be no extra financial help for our city.
“No extended support for employees on furlough, even if we are still in complete lockdown when the government starts withdrawing the scheme. attractions. In addition, a
£2 billion fund will be set up to pay for six-month work placements for 16 to 24-year-olds on universal credit, while £1 billion of grants will be offered to public sector bodies to improve energy efficiency.
Vouchers will allow diners a £10 discount on eating out on certain days in August, but Leicester restaurants could miss out on this stimulus if the lockdown is not lifted by then.
“No extra money for businesses who are already struggling and at their wits’ end, forced to close their doors again or delay opening at all.
“And no extra support for the city council despite all the extra work they are doing to protect vulnerable people who are shielding, keep the homeless off the streets and get food to people who can’t even afford to eat.
“People in Leicester have already made huge sacrifices, and are going the extra mile to stay home once more, so we can get on top of this awful virus.
“They deserve better than a government who just seems willing to leave people to fend for themselves.”
Labour Leicester South MP Jon Ashworth said: “Tory ministers put us in lockdown and now they have abandoned the city, its businesses and their employees.
“We will continue to push for the support that be had been led to believe was coming.”
It had been hoped that chancellor Rishi Sunak would outline extra help for the only city in a local lockdown in his summer statement today but that has not happened.