Fears for Businesses as Regions Enter Tier 3 Restrictions

Written by: Keith Tully

Business closed due to restrictionsThere are growing fears for what being entered into Tier 3 Covid restrictions might soon mean for businesses in the various regions being affected.

Greater Manchester is set to join the Liverpool City Region and Lancashire in Tier 3, the highest level of local lockdown, in the coming days as the UK government attempts to restrict the spread of coronavirus.

Financial support is being provided to local authorities and to companies in the impacted areas but there are concerns that there will be widespread job losses and a significant number of employers forced out of business in the coming weeks.

Only pubs and bars that serve substantial meals are being allowed to remain open once Tier 3 restrictions come into effect, which could soon see many hospitality venues closing their doors for good.

Meanwhile, soft play centres, casinos and betting shops will also not be able to operate in the context of the strictest lockdown measures, which for them could lead to a fight for survival and job cuts in the coming months.

Even for those businesses that are able to remain open, such as restaurants, there are worries that consumer demand will be well down on normal levels as the pandemic goes on and people are generally fearful of catching and spreading coronavirus.

There have been some disputes recently between regional leaders and the central government over just how much public money should be allocated to protect incomes, jobs and businesses in areas facing new restrictions.

The issue is particularly contentious in part because the government’s initial Coronavirus Job Retention Scheme, which covered the costs of millions of furloughed workers’ wages earlier in the year, is scheduled to close at the end of October.

Damian Waters, the North West of England director for the Confederation of British Industry (CBI), has said “there is no escaping” the impact of new restrictions affecting various regions.

“Firms in hard-hit sectors like hospitality, leisure and tourism – and their supply chains – have seen only a limited recovery from the earlier lockdown, and fresh obstacles could prove fatal for some,” he said.

Matthew Fell, the CBI’s chief UK policy officer, added: “Any restrictions which mandate business closures, whether local or national, must be joined in lockstep by financial measures which protect livelihoods during what is certain to be a difficult winter.”

Keith Tully

Keith Tully

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY