Call for support for Devon businesses

Tier 2 stays as covid cases stop falling

Devon is staying under tier 2 covid restrictions for at least another two weeks. 

Health secretary Matt Hancock announced very few changes to regional restrictions on Wednesday. Some areas of the south east have moved into tier 3, whilst Herefordshire has dropped into tier 1, the only mainland county other than Cornwall to be on the lowest level.

Keeping Devon is tier 2 is going to be difficult and worrying for many of the county's employers. The Exeter Chamber and Devon County Council is calling for further government support.

Joanne Caine, vice chair of Exeter Chamber says:  “As Devon remains in Tier 2 we call for urgent additional support for businesses operating under severe limitations. This is hitting particularly hard in the hospitality sector at a time of the year that should have been their busiest. 
 
"Together with InExeter we are supporting the Bounce Back Better manifesto: which calls for a one off grant for leisure and hospitality businesses, with an extension of reduced VAT rate, a pause on NIC for furloughed employees and further extension of the business rates holiday for 2021 and 2022."

On Wednesday afternoon, the chancellor announced an extra month's extension of the furlough scheme which covers up to 80 per cent of salary costs for people who don't work, although businesses still have to pay national insurance and pension contributions, usually totalling about 17 per cent of salary.

Devon County Council's Conservative leader says unless the government provides more support for businesses, many won’t exist in the new year.

While cases in the county had been falling during the second lockdown, numbers have begun to rise in recent days, with the infection rate for Devon now back to 86.1 per 100,000, although it varies significantly across the county with East Devon, Exeter and North Devon over 100 per 100,000, while the South Hams is at 29.9.

Cllr John Hart, who also chairs the county’s multi-agency Local Outbreak Engagement Board, said that remaining in Tier 2 probably was the right decision, but that more support for local businesses was urgently needed. He said: “I’m afraid this is the right decision because of the number of positive cases in Devon right now – especially among our older residents – and the huge pressure on our NHS services.

“But if we are to accept these restrictions continuing into the New Year, the Government must act swiftly with more support for local businesses. When we went into Tier 2, I called for action and I am renewing that call today. Every day I am hearing from businesses which are being severely affected and many of our local hospitality companies are on their knees.

“The government must do more to help them survive otherwise many of these companies – which are the lifeblood of Devon’s economy – won’t be here in the New Year.”

Steve Brown, director of Public Health Devon (designate) added:  “We had been seeing our case numbers falling due to the recent national lockdown, but that fall has slowed and has now levelled off since we adopted Tier 2 restrictions.

“I do not believe that we are ready yet to relax our restrictions to the lower tier, especially as we head into Christmas, and the likelihood – although I would advise people think really hard about doing so – of families and friends meeting up in Christmas bubble arrangements.”