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Government will impose Tier 3 on areas that don’t improve with or without support from local authorities

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The Prime Minister confirmed the government will step in and impose Tier 3 restrictions even without agreement from local politicians. 

Yesterday Greater Manchester was placed in Tier 2 of the new Covid Alert system, avoiding the tightest restrictions. This meant there were few changes to the local lockdown rules that were already in place.

People from other households can now mix in private gardens but mixing with other households indoors is prohibited. Pubs and restaurants are allowed to remain open despite concerns for their closure.

Last night Boris Johnson issued a warning that the government will ‘do whatever we think is necessary over the next few days and weeks’, adding that the rules would be put in place whether there was backing from local authorities and mayors or not. 

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He said: “We want to take local authorities with us. Obviously a local approach can be immensely valuable.

“In enforcement, the local knowledge of the area, the places where the virus may be transmitted, local activity in closing down people who are transparently breaking the rules, local enforcement, local test and trace.

“These can be fantastically powerful.

“We want to work with local authorities to deliver this, that’s why we are offering the deals and the solutions that we are.

“But if we can’t get agreement then clearly it is the duty of national government to take the necessary action to protect the public and to protect public health and we will.”

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Boris also claimed that the government came to an agreement with the only area placed in Tier 3, Liverpool City Region and its metro mayor, Steve Rotherham. In the area, gyms, leisure centres, casinos, and betting shops will all close from Wednesday.

However, Rotherham has denied this. He wrote on Twitter that ‘it was the government that decided we needed local restrictions in our area… it wasn’t local leaders and it’s disingenuous for them to indicate otherwise’.

Boris confirmed last night that increased funding for local test and trace facilities plus the enforcement of new rules in areas put into Tier 3 would be offered.

He said: “It’s absolutely correct to say we’re working with local authorities across the country, but particularly with those badly affected regions that everybody knows about in the North West and the North East, Yorkshire and so on and trying to work with them to support a collective package of measures”

“I was very pleased that Steve Rotheram of the Liverpool city region came forward with a package, we’re helping him. And the offer is that, to all local leaders who are facing problems, big increases in the infection rates, we will help to support more local test and trace, more enforcement and so on.

“We stand ready to work with local government at all levels.

“Clearly as a national government we have to think about our primary duty which is to save life and protect the NHS and we will do whatever we think is necessary over the next few days and weeks.”

It has yet to be confirmed what would trigger an area moving into the highest alert level, Tier 3.

Andy Burnham has explained that he was ‘glad the government has listened and that putting Greater Manchester in Tier 2 is the ‘right decision’.

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People on working tax credits will get a £500 one-off payment, Rishi Sunak confirms

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Brits on tax credits get a one-off benefits payment of £500, Rishi Sunak reveals in budget. 

Outlined in the budget, Sunak explained that a £20 weekly increase in universal credit will extend for a further six months.

The chancellor explains that by the way Working Tax Credits system works people will not be able to receive the extra £20 weekly. 

Instead, people will benefit from a £500 one-off payment.

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Mr Sunak said: “To support low-income households, the Universal Credit uplift of £20 a week will continue for a further six months, well beyond the end of this national lockdown

“We’ll provide Working Tax Credit claimants with equivalent support for the next six months.

“Because of the way that system works operationally, we’ll need to do so with a one-off payment of £500.”

The £500 tax credit boost will run in the same way that the Universal Credit is paid – automatically. 

Lots of people have switched from the old ‘Tax Credit’ to the new ‘Universal Credit’ system. Anyone who hasn’t yet been transferred across will now be eligible for this new one-off payment. 

The number of people claiming universal credit in the UK has doubled since the start of the pandemic, reaching 6 million people at the start of this year. 

The extra benefit support is welcomed but many are raising concerns that six months is not long enough.

Sunak also revealed in today’s budget that furlough will be extended until September but employers will have to pay 10% of the employee’s wages in July and 20% in August and September. 

You can see a round-up of all the key points from the budget here

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What Rishi Sunak’s new budget means for people in Greater Manchester

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Rishi Sunak has said he wants to be honest about the government’s plans for fixing the public finances.

The chancellor says there has been ‘acute damage’ to the economy, with more than 700,000 people losing jobs and the economy shrinking by 10% – the largest fall in 300 years.

Borrowing has also been as high as during wartime.

He said: “It’s going to take this country, and the whole world, a long time to recover from this extraordinary situation.”

Here are the key points from his 2021 budget announcement….

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Furlough

  • Sunak explains that 1.8 million fewer people are expected to be out of work than previously thought, with the peak at 6.5% down from the forecasted peak of 11.9%.
  • Furlough is set to be extended until the end of September this year, however, firms will be asked to contribute 10% of employee’s wages in July and 20% in August and September as the scheme is gradually phased out.
  • A fourth grant worth 80% of average trading profits up to £7,500 covering February to April that will help self-employed people.
  • The £20 increase in universal credit will extend for six months

Business Support

  • Total cash support to businesses has reached £25bn. A further £5bn restart grant has now been confirmed to help companies get going after lockdown.
  • Hospitality and leisure businesses will pay no business rates for three months, then discounted for the remaining nine months of the year by two-thirds.
  • The 5% VAT cut will be extended to the end of September and gradually increased at 12.5% for six months before returning to the normal rate in April 2022.

David Dixon/Geograph

Housing

  • The stamp duty holiday will be extended on properties up to £500,000 to the end of June. It will return to normal levels from October 1st.
  • Mortgage guarantees were also confirmed to help first-time buyers access 95% mortgages, with just 5% deposits.

Public Finances

  • The government will take a ‘fair’ approach to ‘fixing the public finances’ the chancellor confirms.
  • There will be no increase in national insurance, income tax or VAT.
  • The personal allowance will remain at £12,750 until 2026 and the higher rate will increase to £50,270 next year.
  • Inheritance tax threshold, pensions lifetime allowance, annual exempt allowance from capital gains tax and VAT exemption thresholds will all be frozen.
  • New minimum wage rates come into force in England on April 1st. Basic rate workers will see a 2.2% increase, with the National Living Wage rising to £8.91 an hour.

David Dixon/Geograph

Borrowing

  • The budget deficit will reach £355billion this year (17% of GDP) – the highest level in peacetime.
  • Sunak said: “It’s going to be the work of many governments over many decades to pay it back, just as it would be irresponsible to withdraw support too soon, it would also be irresponsible to allow our future borrowing and debt to rise unchecked.”

Growth

  • The chancellor explains that the economy will recover more quickly than previously thought.
  • GDP will grow by 4% this year and 7.3% next year according to official forecasts.

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Contactless payment limit set to increase to £100

It’s hoped this will provide a much-needed boost to the retail sector

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Rishi Sunak is set to announce in the budget today an increase in contactless payment limit up to £100.

At the start of the Covid-19 pandemic in 2020, the contactless limit was increased from £30 to £45 and it is hoped this second increase will provide a much-needed boost to the retail sector.

Some industry sources have expressed alarm at the new threshold, warning of the potential increase in fraud, according to Sky News.

The increase in the limit was made possible due to Brexit. The European Commission set the limit to €50.

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Sunak is expected to highlight the important of ‘pinging’ payments as shoppers continue to rely less on cash. 

Speaking to the Evening Standard, he said: “London’s retail sector is famous across the world, with Oxford Street, Covent Garden and Westfield seen as global destinations for shopping.

“As we begin to open the UK economy and people return to the high street, the contactless limit increase will make it easier than ever before for people to pay for their shopping, providing a welcome boost to retail that will protect jobs and drive growth across the capital.”

The chancellor is set to unveil the budget at 12:30pm today. He is expected to offer more information on the mortgage scheme that will offer 5% deposit as well as extending the stamp duty holiday and increase corporation tax from 19% to 23%.

Sunak is also set to announce the extension of furlough until September and information on a £5bn scheme to help firms such as shops, clubs and gyms.

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