Businesses are facing 'weeks of uncertainty'
Struggling businesses could face “weeks” of uncertainty before they can claim new emergency funding.
The second national coronavirus lockdown, starting today, is predicted to be another hammer blow to firms which had barely picked up the pieces after previous restrictions were relaxed.
And while cash is expected to be on hand to prop up industries affected, they face an anxious wait while rules are finalised to allow local authorities to start issuing handing outs.
“We will come under increasing pressure from businesses to get grants out ,” said Patrick Me li a, deputy head of paid service at the North East Combined Authority (NECA).
“The Government has announced businesses impacted by the lockdown
will receive certain levels of funding and staff will receive furlough payments.
“At this point we haven’t received the cash from the Government, nor have we got regulations detailing how to allocate that and which businesses will be eligible.
“It will cause f rust ra
tion from the business sector over the next couple of weeks until we get regulations in place in a way that allows us to distribute that.”
Mr Melia, who is also chief executive at Sunder land City Council, was speaking at a meeting of the combined authority’ s Leadership Board, which was held by videolink and broadcast via YouTube.
The panel has pleaded with families to “live by the rules” in the hope it could mean the region emerges from lockdown faster and paves the way for a speedier economic recovery. English councils are each due to receive a share of £1.1billion from ministers, over which Me li a expects local authority bosses will be given “discretion” to distribute where they think the need is greatest.
Treasury chiefs have suggested this would be on the basis of £20 per person, meaning the North East could be inline for about £50million.
The furlough scheme has also been extended, while businesses can apply for a separate Local Restrictions Support Grant if they are forced to close as a result of the latest COVID lockdown.
But Mr Me li a insisted essential council services would keep running.