Financial Benefits To British Councils Could Become Incentive To Embrace Broad Lockdowns

Financial Benefits To British Councils Could Become Incentive To Embrace Broad Lockdowns

By Gavin Mackintosh And Sammie Jones-

Financial benefits provided to councils could become an incentive for various councils in the Uk to support broad lockdowns in their regions.

The various tiers of restrictions already imposed on certain councils , and those to later join those councils, should not be overcompensated with heavy financial support. Financial support is necessary to help struggling businesses, but if substantial financial support over and above what councils need could become a negative drive for some councils to easily support, embrace, and even call for lockdowns.

Listening to the wide objections to the imposition of a tier 3 lockdown in Manchester made by  the city’s Mayor, Sir Burnham, before the city received a £60m pay out to compensate losses for the imposed  tier 3 restrictions against Manchester ,  the feeling is that  the presence of sufficient financial benefits, his issue of people’s livelihood being under threat could easily just disappear.  against Manchester,

This could mean that a higher tier lockdown placed on the city, will not matter if a sizeable financial help is put in a place.

Although such a financial package will not completely make up for loss employment or wages, it will solve 66% of the problem for employees in lost income, but how much of that decentralised outflow would the Mayor himself and top officials have access to? This is not information we can expect to be given, but the cash sums won’t be next to nothing.

”We are not going to accept a deal that will damage thousands of people in this city region for no apparent benefit,” he said. The operative word her is ‘deal’. If the deal is right, there will be no fight.

The mayor said the government had not offered the necessary financial backing for tier 3 lockdown.

Mr Burnham added: “That is why we have unanimously opposed the Government’s plans for Tier 3. They are flawed and unfair.

“They are asking us to gamble our residents’ jobs, homes and businesses and a large chunk of our economy on a strategy that their own experts tell them might not work. Sir Richard Leese, leader of Manchester City Council, said the government was asking the authority to sign up to measures that its own advisers were not convinced would work”.

Sir Richard Leese, leader of Manchester City Council, said the government was asking the authority to sign up to measures that its own advisers were not convinced would work.

Speaking to reporters after Mr Burnham at the press conference, he asked: “Why would we accept a proposal that their own advisers say won’t work?”

Sir Richard compromised his comments by stating that the region is “still in a position where we are prepared to work co-operatively with government”.

Speaking after Mr Burnham at  last week’s press conference, he asked: “Why would we accept a proposal that their own advisers say won’t work?” Mr. Burnham and Sir Richard appear to be saying they will happily co-operate with the British government about a proposal that won’t work if the financial benefits are right. In other words, if the deal is right.

We can also wonder how many other councils are thinking similar lines. Councils that object to being placed in the higher tier restrictions and suddenly become flexible when more cash is offered, show how important the economic consequences of restrictions are regarded.

Support

The British government have been excellent in its support  of communities, having implemented a furlough scheme that was probably the best in the world during the lockdown period that began in March.

The government also dedicated a total of £465m to help councils cope with the financial impact of the restrictions imposed on them. issued supportive bounce back loans of £50,000 and have supported thousands of small businesses throughout the lockdown period, and even beyond.

Further support is promised for affected employees of the current restrictions that will see many lose their jobs. The problem is that if such support is given to every business and every council, the potential incentive for corruption could easily show up.

Instead of councils to insist on protecting the livelihoods of employers and employees like many others have done, many could be quiet since government financial support will go through councils. Where councils are responsible for allocating funds to various businesses, it leaving some of their fat cats to line up their own pockets on whatever money is left.

Restrictions imposed on councils with high level infections are probably necessary, but the generous packages given to affected  councils to help them cope could become an incentive for some councils to  welcome lockdowns or even call for them.

 

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