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Coronavirus: Greater Manchester leaders ready to drop 80% wage furlough demand | UK news

Manchester city council’s leader, Sir Richard Leese, has said the region’s leaders are ready to drop one of their key demands – that hospitality workers should be paid 80% of their wages as furlough – as they seek a deal with the government on putting the region under the tightest coronavirus restrictions.

His comments came as the Greater Manchester mayor, Andy Burnham, accused the government of provocation after a minister threatened to impose the tier 3 restrictions on the region if a deal wasn’t done by noon on Tuesday.

Leese said: “The Treasury have been very clear with us, that for them the national [job support scheme] is an absolute red line. So frankly we are clear that just simply pursuing [the more generous 80% level] is just leading to a complete stand-off. So we are looking at other ways to get into a position that we are comfortable with.”

He added: “To be honest I thought we were going to do a deal yesterday. On the basis of that, then I would probably put the odds at slightly worse than 50% [of reaching a deal], but the discussions last night do seem positive. And whilst we’ve got discussions taking place I will remain optimistic.”

Robert Jenrick, the communities secretary, warned Burnham late on Monday night that if Greater Manchester fails to agree to pub closures and a ban on household mixing, then tier 3 measures will be brought in unilaterally.

Burnham, who insists he has cross-party backing among MPs and council leaders, said he was meeting Greater Manchester’s leaders on Tuesday morning to come up with a “fair funding framework” to compensate the region’s poorest workers, many of whom will be unable to make a living under tier 3 restrictions.

Speaking on BBC Radio 4’s Today programme, Burnham said: “A late-night ultimatum briefed to the media was a slightly provocative move, but I’m not coming on to rise to that. I’m going to try to be positive and respond and find a way forward.”

After issuing his ultimatum, Jenrick then wrote to Greater Manchester’s leaders to offer them £22m “to fund additional support for vulnerable people and redouble efforts on compliance and enforcement”.

On Tuesday morning, the business minister, Nadhim Zahawi, repeated this figure and warned that action is needed before intensive care units are overwhelmed – a claim denied by the city’s medical leaders.

Zahawi told Today: “We have been negotiating in good faith for 10 days with Andy Burnham and other local leaders in Greater Manchester. By the first week of November, if the trajectory continues at the rate it is at the moment, they will run out of ICU capacity in Greater Manchester.”

But Leese said £22m was simply the £8 per head offered to all areas which go into tier 3 to pay for enhanced test and trace. “We’re now talking about the business support package that will go with the £22m,” he said.

Lancashire negotiated £30m for business support and the Liverpool city region received £44m, on top of the £8 a head.

Burnham insisted: “We’ve never been given a figure for that additional support. So what I will be proposing to the Greater Manchester leaders, when we meet this morning, quite early, is that we write to the government with what we think a fair figure is, given we have been under restrictions for three months and that has taken a real toll on people and businesses here.

“The second thing we would need is full flexibility to support the people who we think are going to need to be supported under a tier 3 lockdown.”

One of Greater Manchester’s nine Conservative MPs told the Guardian on Monday that he did not want to push constituents into “destitution”.

Christian Wakeford, who was elected MP for Bury South in December, said while he was not wedded to Burnham’s insistence that furloughed workers be paid 80% of their wages, as during the first lockdown, there should be a “minimum floor”.

Wakeford said: “If it’s not 80%, it’s no lower than a set amount, whether that’s minimum wage or something else, so that we are not forcing people into destitution. I appreciate the knock-on effect that has because you couldn’t just introduce that for Greater Manchester, but I do think that’s an area that has unity between Conservatives and Labour. I don’t want to be a member of parliament who pushes someone into destitution so they can’t put food on the table just before Christmas.”

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