Labour calls for more support for businesses and workers to prevent 'ghost town' high streets in West Yorkshire areas hit by local lockdowns

The party warned that high streets could turn into “ghost towns” in areas like Calderdale, Kirklees and Bradford, as well as Greater Manchester and parts of Lancashire, with new local lockdowns because of Covid-19.

Labour said there was a £170m underspend in the Government’s Covid-19 grants programme for businesses in areas with local restrictions, claiming that ministers were “clawing this back”, rather than using it to safeguard jobs and livelihoods.

The party estimated that this funding could support an additional 15,000 businesses in areas with local restrictions.

Shadow minister for business and consumers Lucy Powell said: “It’s a week since local restrictions were put in place in Greater Manchester, and West Yorkshire, yet there has been zero extra support for struggling businesses caught up in this public health crisis.

“We’re seeing a wave of redundancies across the high street, threatening jobs and livelihoods, which could lead to ghost towns, as businesses are forced to shut up shop.

“Unless Ministers take action to provide extra help to firms, that wave will turn into a tsunami leading to lasting damage, and the loss of many thousands of jobs, weakening our economy and our ability to recover from the crisis.”

Labour called for a Hospitality and High Streets Fightback Fund to protect jobs and help struggling firms, adding that if local areas were able to use the underspend in the coronavirus business grants schemes, it would unlock significant funds for local areas to target help.

Funds should be better focused on struggling businesses and their supply chains, including bed and breakfasts, hotels and cafes in coastal communities, conference centres and music venues, said Labour.

On Friday, Health Secretary Matt Hancock announced that restrictions banning people in the affected areas from visiting friends and family due to a spike in coronavirus will remain in place without any changes.

He said data showed transmission rates were not yet low enough in Bradford, Kirklees and Calderdale to allow the rules to be eased.

The move will disappoint Tory MPs such as Dewsbury MP Mark Eastwood and Shipley’s Philip Davies who had lobbied Mr Hancock to take a more localised approach and release parts of their constituencies from restrictions where cases had been low.

The measures were announced in July to urgently tackle an increase in Covid-19 cases in the areas. It means visits outside a support bubble cannot be held indoors or in private gardens but people are still able to meet others in groups of up to six, or two households, in outdoor public places. The restrictions will be reviewed again on Friday.

In Bradford, pools, indoor gyms and other leisure facilities will also stay shut, while Rotherham has been taken off the list of places with a higher-than-average rate. It came as scientists advising the Government warned the R rate – the reproduction number – may be rising.

A Government spokesperson said;“We understand the challenges faced by the hospitality industry and the high street. That’s why we’ve taken unprecedented and targeted action with our Plan for Jobs to support people and businesses through the pandemic.”

“This includes the successful Eat Out to Help Out scheme, a 15 per cent cut in VAT, cash grants worth up to £25,000, 100 percent business rates relief for eligible businesses, eviction protection and tax deferrals, alongside support for over 9.6 million furloughed workers, and a £1000 bonus for every furloughed staff member a business retains.”

“We’re working closely with local areas to make sure that individuals and businesses in all regions are directed to the right support.”