This is what Harrogate politicians think of Rishi Sunak's new coronavirus job support scheme
Political leaders in Harrogate have welcomed the latest government support for businesses caught up in coronavirus lockdowns - but there are still concerns that many struggling firms could close for good.
Chancellor Rishi Sunak has today announced a six-month job support scheme in which the government will pay two thirds of workers’ wages for firms told to temporarily close.
It comes ahead of a further announcement that pubs and restaurants in northern England will be shutdown in an effort to stem the rising number of coronavirus cases.
However, until the announcement is made early next week, it remains unclear which areas will be affected and where the support will be needed.
Harrogate and Knaresborough MP Andrew Jones said the scheme will give businesses and employees certainty over the coming months but added he remains hopeful that it will not be needed in North Yorkshire.
“Where we are now is not where we were in March and the chancellor’s statement builds on his announcement of the new Job Support Scheme which begins on 1 November," he said.
“When we are experiencing local restrictions, a powerful second wave of infections and uncertainty over how the pandemic is likely to progress this is a good policy.
“I hope though that we don’t have to have any further local restrictions in North Yorkshire."
The local Liberal Democrat party said while today's announcement is a step in the right direction, it "will do nothing for local businesses unless our area is placed into a local lockdown, something no-one wants to see".
The party's parliamentary spokesperson Judith Rogerson said: "Our local economy is heavily reliant on the tourism, events, and hospitality sectors – all of which have been severely hurt by the government's restrictions.
"Local businesses are already seeing the impact of a dramatic drop in tourism and no conference visitors, so we're going to need additional support otherwise we'll see businesses going under and jobs lost."
The Job Support Scheme was initially meant to support jobs where employees can return part-time.
But it has now been expanded to help workers in places like pubs and restaurants, which could be told to close because of local restrictions.
The government will pay 67% of wages up to a maximum of £2,100 a month per employee. To be eligible, employees must be off work for a minimum of seven days.
In addition, for businesses forced to close in England, the chancellor announced an increase in business grants - with up to £3,000 a month paid every fortnight.
Mr Sunak acknowledged that the support comes "in advance of what may be a difficult winter".
He said: “I have always said that we will do whatever is necessary to protect jobs and livelihoods as the situation evolves.
“The expansion of the Job Support Scheme will provide a safety net for businesses across the UK who are required to temporarily close their doors, giving them the right support at the right time.”
By Jacob Webster, Local Democracy Reporter