The Government has introduced a new graded system of restrictions in England to help control the spread of the virus. But how does this affect SME’s across the UK?
How does the three-tier system work?
Local authorities across the UK will be classified as being Tier 1 (medium alert level – this covers most of the country), Tier 2 (high alert level), or Tier 3 (very high alert level – this is where transmission rates are causing the greatest concern). Taken from the Government website, here are the tier specific restrictions:
Medium Alert Level
This is for areas where national restrictions continue to be in place. This means:
- All businesses and venues can continue to operate, in a COVID-19 Secure manner, other than those that remain closed in law, such as nightclubs
- Certain businesses selling food or drink on their premises are required to close between 10pm and 5am
- Businesses and venues selling food for consumption off the premises can continue to do so after 10pm as long as this is through delivery service, click-and-collect or drive-thru.
- Schools, universities and places of worship remain open
- Weddings and funerals can go ahead with restrictions on the number of attendees
- Organised indoor sport and exercise classes can continue to take place, provided the Rule of Six is followed
- People must not meet in groups larger than 6, indoors or outdoors
High Alert Level
This is for areas with a higher level of infections. This means the following additional measures are in place:
- People must not meet with anybody outside their household or support bubble in any indoor setting, whether at home or in a public place
- People must not meet in a group of more than 6 outside, including in a garden or other space
- People should aim to reduce the number of journeys they make where possible. If they need to travel, they should walk or cycle where possible, or to plan ahead and avoid busy times and routes on public transport
Very High Alert Level
This is for areas with a very high level of infections. The Government will set a baseline of measures for any area in this local alert level. Consultation with local authorities will determine additional measures. The baseline means the below additional measures are in place:
- Pubs and bars must close, and can only remain open where they operate as if they were a restaurant – which means serving substantial meals, like a main lunchtime or evening meal. They may only serve alcohol as part of such a meal
- Wedding receptions are not allowed
- People must not meet with anybody outside their household or support bubble in any indoor or outdoor setting, whether at home or in a public space. The Rule of Six applies in open public spaces like parks and beaches
- People should try to avoid travelling outside the ‘Very High’ area they are in, or entering a ‘Very High’ area, other than for things like work, education, accessing youth services, to meet caring responsibilities or if they are in transit.
- People should avoid staying overnight in another part of the UK if they are resident in a ‘Very High’ area, or avoid staying overnight in a ‘Very High’ area if they are resident elsewhere
What support is available to businesses that are affected?
For businesses in Tier 3 areas, Chancellor of the Exchequer, Rishi Sunak has announced an expansion of the Job Support scheme for businesses who have been forced to close or reduce opening times. The scheme will open on 1st November and will run for 6 months. For businesses, whose employees are working less than their normal hours, this scheme will provide wage subsidies to help reduce the member of redundancies in the upcoming months. For businesses that are forced to suspend operations due to local or national lockdowns then the government will pay 2/3 of each furloughed employee salary, up to £2,100 a month. Business owners will still be expected to cover National Insurance and employer pension contributions.
For employers who keep previously furloughed employees on the payroll until the end of January next year they will be eligible for a £1,000 Job Retention Bonus.
The Government are also increasing the scale of the Local Restrictions support grant scheme. This means that any company in England that has been legally forced to close due to COVID restrictions will be able to claim a grant of £3,000 a month after two weeks of closure.
