Crackdown on London Socializing as Virus Battle Over North Rages

(Bloomberg) -- Londoners will be banned from mixing with other households indoors, Boris Johnson’s government said, as leaders in the north of England fought back against extra curbs in their communities.

The rule change in London, announced by Health Secretary Matt Hancock in Parliament, will come into force at 00:01 a.m. on Saturday. People will also be discouraged from using public transport.

The tougher restrictions had been pushed for by Mayor of London Sadiq Khan, who told the city’s assembly on Thursday “we have a difficult winter ahead.” But in Manchester, local leaders pushed back against government plans to put the northwestern city region into its highest tier of virus restrictions, and called for more financial assistance.

“It is wrong to place some of the poorest parts of England in a punishing lockdown without proper support for the people and businesses affected,” Greater Manchester Mayor Andy Burnham told reporters. “Let’s make it a one nation policy, not make the north the sacrificial lamb.”

There’s been a surge in the U.K.’s daily Covid-19 cases and 138 deaths were reported on Thursday. Northern Ireland is planning to close schools from Monday and impose new curbs on pubs and restaurants, while Wales plans to restrict travel from English hot spots, with new regulations coming into force Friday.

Burnham accused the premier of seeking to use northwestern communities as what he called “the canaries in the coal mine for an experimental regional lockdown strategy” that the government’s own advisers concede may not work.

Ministers have earmarked Greater Manchester for the toughest restrictions in England’s new three-tier virus system, but has been in deadlocked talks with Burnham and other leaders over financial support for businesses and individuals.

Burnham said there should be a “proper compensation scheme” for businesses forced to close, with their workers on furlough receiving 80% of their wages, and the self-employed receiving the same compensation.

Growing Anger

Earlier in the day, a meeting to try to thrash out the issues ended without agreement, and the recriminations crossed the political divide. Opposition Labour Party MP Lucy Powell told Hancock there was “unanimous fury,” while Conservative MP William Wragg said a briefing with ministers had been “pointless.”

The prime minister’s spokesman, Jamie Davies, told reporters local authorities will receive extra support based on the number of people in their area, adding that while the central government has the power to impose the rules, it will continue to try to reach a consensus.

Johnson announced the new tiered system to tackle regional Covid outbreaks this week to try to simplify social-distancing rules. But his government has been left haggling with local authorities over specific measures. The Liverpool region is currently the only area in the highest tier, with restrictions including the closing of pubs not serving food.

Britain’s increasingly fractured coronavirus picture comes as the prime minister resists calls for a “circuit-breaker” national lockdown and continues to pursue a localized approach. He is trying to balance reducing virus transmission with keeping as much of the economy open as possible.

Hospitality Hit

In London, where pubs and bars are allowed to remain open but may see reduced demand from a ban on household mixing, hospitality workers will not be eligible for the enhanced job support for shuttered firms announced by Chancellor of the Exchequer Rishi Sunak last week.

That means, rather than having two-thirds of their pay provided by the state, employees will have to rely on a plan that subsidizes part-time work, and places the onus on firms to fund a chunk of their wages. Without extra support, that may increase the risks of layoffs, accelerating an expected spike in unemployment in the final months of 2020.

“I know these restrictions are difficult for people, I hate that we have to bring them in, but it is essential that we do bring them in both to keep people safe and to prevent greater economic damage in the future,” Hancock said. “Local action is one of the best weapons we have.”

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