'Bewildered, frustrated and angry': North West business leaders react to new restrictions as three-tier 'traffic light system' announced

After a weekend of 'speculation and rumour', Prime Minister Boris Johnson today announced pubs, bars, gyms, betting shops, casinos, and adult gaming centres in Liverpool City Region are to shut from Wednesday under a new three-tier 'traffic light system'.

The new traffic-light system has three levels - medium, high and very high - which are all dependant on infection rates in local areas.

English regions under the highest alert level (tier three) will see pubs and bars close. Local leaders will help determine whether other venues should be closed – such as gyms or casinos in very high alert level areas. A four-week sunset clause will apply to the restrictions.

Areas listed as medium will be subject to the current national rules, such as the rule of six and the 10pm hospitality curfew.

Greater Manchester "dodged a bullet", and was placed under the less severe tier two, avoiding the harshest lockdown measures reserved for areas under tier three.

Deputy Labour Leader, Angela Rayner MP , said the new restrictions are a "direct result of government's failure".

"The failure of existing local lockdowns to drive down infections rates. The failure to deliver a testing system that works. The failure of the Prime Minister to get a grip, " she said.

"Labour supports measures and restrictions to control the virus, save lives and protect our NHS and economy. But we cannot support the incompetence and failure which has led us to this situation.

"The Prime Minister has lost control."

Liverpool Chamber of Commerce chief executive Paul Cherpeau said businesses across the city are "bewildered, frustrated and angry" by the decision.

"A week of speculation and rumour has badly damaged confidence.

"Businesses need to understand the clear evidence for the restrictions that are now being imposed - as many have worked so hard to become Covid safe.

"Whilst our visitor economy will bear the brunt of these new restrictions, the percolating effect on supply chains is hugely concerning, in addition to the psychological impact upon our citizens, business owners and investors.

"It is imperative that the commencement of these measures coincides with an adequately funded and swiftly distributed package of financial support alongside a clear exit strategy for when these new measures in our city region will be lifted.

"Liverpool businesses and communities have been resolute in rebuilding confidence and prosperity since the original lockdown, with innovative developments between public and private sector such as the ‘Liverpool Without Walls’ initiative.

"Our City’s exciting Economic Recovery Plan will grow our local economy and stimulate jobs and investment but we must preserve our existing ecosystem to ensure the strongest possible base exists upon which our recovery can be built and be successful."

In a Joint statement, the Metro Mayor, City Mayor and Leaders of the Liverpool City Region’s six local authorities said they agreed with the Government that restrictions were needed.

But they said: "We must be clear that we have not yet reached an agreement on the wider economic support package that we require.

“The national furlough scheme is inadequate and risks pushing tens of thousands of low paid workers below the national minimum wage, while the direct support to businesses is also less than that offered during the national lockdown.

“Yesterday the Metro Mayor spoke with the Prime Minister and this morning attended COBR where he again reiterated these concerns in the strongest terms.

“We have been assured by government that they will continue to engage in meaningful talks with us on these matters in the coming days and we intend to hold them to that promise. In the meantime, we are looking at what economic support can be provided locally, while we await further national government support.”

St Helens Chamber chief executive Tracy Mawson said the short-term measures "devised in Westminster don’t sit well in the real world when business owners need confidence and employees need their jobs to remain" and said business "can’t be switched on and off like a tap".

"Every business is now concerned about future restrictions.

"We are calling for an effective track and trace system plus proper financial support for people who have to self-isolate and for all firms affected by employees unable to go to work and reduced trading conditions.

“While local firms have been extremely supportive of the need to lockdown in the past, we need more clarity and transparency at this stage, and confidence that the real-world consequences for our Members and communities are understood.

"Imposing these restrictions with a reduced financial support provision is a slap in the face to our wide Membership of small independent businesses whose livelihoods are on the line.

"We need to know the route-map to recovery for all sectors, and a guarantee that our vital manufacturing and logistics firms are able to keep operating and not become subject to a roller-coaster of restrictions."

Managing director at Grosvenor Casinos , Jonathon Swaine, said: “The UK Government’s decision to close casinos in Liverpool is a bitter blow for our colleagues and customers across the city.

“There is no scientific justification whatsoever behind this decision. It is arbitrary, contradictory and will do little to suppress the spread of the virus but will severely impact the viability of fundamentally safe venues where the safety of our customers and colleagues has been our primary focus since we were allowed to reopen.

“This decision, along with further restrictions planned for hospitality venues elsewhere across the North West, has already come at a huge cost and hundreds of jobs are once again under serious threat. It is crucial that we now get the urgent support which will help to safeguard jobs and help us to emerge on the other side of this latest blow.”

Chris Fletcher, director of policy and communications at Greater Manchester Chamber of Commerce , said news the city region will be in tier two will "come as some relief" for businesses.

"However questions still persist around the continued lack of an adequate financial support package for those who cannot operate normally and of course for any business that may be affected should the present status be amended and GM ends up in tier three," he said.

"The virus must be stopped and it’s crucial that full attention is given to the worrying numbers that show the North West is the epicentre of the latest outbreak.

"However stopping the virus cannot come at any price and ongoing damage being done to the economy and community cannot be sustained. The lack of contact with local leaders by Whitehall is simply staggering at a time when it is absolutely needed most."

He added: "We may have dodged a bullet for now but unless we bring the virus under control the very real danger is that we end up in Tier 3 later.

"Without adequate support, funding, transparent planning and upfront, adequately timed communications by government this would be a disaster for the local economy."

Adrian Ellis, general manager at The Lowry Hotel and chair of the Manchester Hoteliers' Association , said: “The announcement that Manchester will be placed into tier two of the new system will come as a major sense of relief to operators who perhaps thought that closure was imminent over the weekend.

“The 10pm curfew still remains a point of contention for operators and will no doubt continue to have a significant impact on revenues.

“We are happy to see this cautious and measured approach and I know the hospitality industry will continue to employ the strong Covid procedures that we have been exercising ensuring we continue to supress the virus and hopefully avoid the impacts that would come with a rise to tier three.”

Roger Marsh OBE DL, Chair of the NP11 (Northern Powerhouse 11) and Leeds City Region Local Enterprise Partnership , said: "We are deeply concerned by the surge in COVID-19 cases throughout the North and the subsequent impact of the pandemic on the health and economy of our region.

“The North has already been disproportionally affected by the pandemic, with a number of our local authorities now placed into the ‘High’ and ‘Very High’ risk areas. Whilst we support restrictions to reduce the spread of the virus, these must be kept to a minimum and supported with clear scientific data and local authority assistance from Government.

“Many businesses throughout the North, particularly those in hospitality, have been left with an uncertain future by today’s announcement. As we head into what will be a challenging winter, we need urgent, co-ordinated, and far-reaching action to safeguard our communities, protect our local economies, and prevent a devastating levelling down effect.

“Our offer to Government is to work in partnership with us and other local leaders to forge a long-term strategy out of lockdown, whilst providing financial support packages for businesses, organisations and employees in the ‘High’ and ‘Very High’ risk areas. There can be no trade-off between the economy and health: one cannot function without the other.

“The North will be integral to the future economic recovery and prosperity of the nation. That’s why we are united in our commitment with the Government to levelling up and unlocking the full potential of our region. However, without financial support and collaboration with local authorities, central government risks its levelling-up commitment. This will be detrimental to our region and the UK.”