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What the new tier system means for businesses

Boris-Johnson

Boris Johnson yesterday revealed plans for a new “strengthened” tier system in England as the country emerges from its second national lockdown on 2 December.

Despite rumours, there will be no fourth tier introduced at this time, however there are significant changes to the three-tier system that England saw prior to its current second lockdown.

As in October, the three tiers, from one to three, represent the alert levels medium, high and very high respectively.

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Another government announcement on Thursday 26 November will reveal what tiers different parts of the country will fall into, with London expected to see the second tier, and the Prime Minister claiming that more regions of England should expect to see higher tiers than before the current lockdown.

What the tiers will mean for businesses

For workers, heading into the office looks to remain a possibility, with the advice being to work from home “where possible” regardless of tier.

While there will be changes for bars and restaurants across the tiers, non-essential retail shops are allowed to remain open across all three tiers.

This is provided they can “operate in a COVID-secure manner”, the government stated.

This will be welcome news to non-essential retailers that have been missing out on Christmas shoppers during most of November.

While tier three will not restrict businesses themselves, some retailers could expect to see a drop in footfall due to restrictions, for example, on travelling to and from tier three areas.

The advice to work from home if possible could also affect footfall in commuter-heavy areas.

The government has also updated its financial support for businesses, including the Job Support Scheme.

If a business closes due to the tier restrictions then employees out of work for at least a week will be due two thirds of their wage up to £2100 per month.

The Local Restrictions Support Grant means smaller businesses will now be able to claim £667 for every two-week period for which they are forced to close.

Tags : boris johnsonCoronavirusCOVIDcovid-19Job Support SchemeUK Government
Sam Lewis

The author Sam Lewis

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