Hours after UK Prime Minister Boris Johnson announced another six-week lockdown, chancellor Rishi Sunak on Tuesday announced £4.6 billion ($6.25 billion) in grants for companies that will be closed at least until mid-February, as new Covid-19 cases continued to spike.
Calling the recent spike driven by the new variant “alarming”, Johnson clamped the third lockdown in England, effective from early Wednesday. Scotland went into a lockdown on Monday night while Wales and Northern Ireland have similar tough restrictions.
Sunak said, “The new strain of the virus presents us all with a huge challenge – and while the vaccine is being rolled out, we have needed to tighten restrictions further. Throughout the pandemic, we’ve taken swift action to protect lives and livelihoods and today we’re announcing a further cash injection to support businesses and jobs until spring.
“This will help businesses to get through the months ahead – and crucially it will help sustain jobs, so workers can be ready to return when they are able to reopen.”
The UK government has already borrowed nearly £250 billion since early 2020 and offered help to companies to furlough employees and to the self-employed, besides concessions and grants to companies.
Michael Gove, cabinet minister, admitted on Tuesday morning that the lockdown may last until March. Parliament has been recalled on Wednesday to pass related legislation for the third lockdown since March 2020.
A grim-faced Johnson said on Monday night, “(We) now have a new variant of the virus. It has been both frustrating and alarming to see the speed with which the new variant is spreading. Our scientists have confirmed this new variant is between 50 and 70 per cent more transmissible.
“As I speak to you tonight, our hospitals are under more pressure from Covid than at any time since the start of the pandemic. In England alone, the number of Covid patients in hospitals has increased by nearly a third in the last week, to almost 27,000.”
He added, “That number is 40% higher than the first peak in April. On December 29, more than 80,000 people tested positive for Covid across the UK – a new record. The number of deaths is up by 20% over the last week and will sadly rise further.
“With most of the country already under extreme measures, it is clear that we need to do more, together, to bring this new variant under control while our vaccines are rolled out. In England, we must therefore go into a national lockdown which is tough enough to contain this variant. That means the government is once again instructing you to stay at home.”
