Liverpool City Region has received a £40m shot to the arm for its hospitality and leisure sector, as the local economy fights for survival.
Liverpool City Council has contributed £10m of the total £40m that leisure and hospitality businesses in the city region on the brink of collapse can apply for.
The funds are a “stop-gap” while the city region waits to secure further financial support from central government, and are directly in response to the new restrictions that were rolled out on 3 October forbidding people from mixing with other households in pubs, restaurants and bars.
In a statement issued by the Liverpool City Region Combined Authority, the body said these new Covid-19 restrictions will make “the already perilous situation” for the sector “even tougher”.
The statement added: “We want to send a message to those businesses that we understand the pain you are going through, your fight to survive and that we stand with you.
“We have made it clear to the government that with new restrictions must come a comprehensive package of financial support for our economy, and that this is particularly urgent for businesses in your sector, many of which have already reached breaking point.
“We pledge to you that we are doing everything we can to convince the government to help.”
In response to the news, Liverpool mayor Joe Anderson said the government has “failed to comprehend the economic consequences” of introducing the new restrictions, and said the future of the industry has been left “hanging by a thread”.
He added: “If the government decides not to support us in helping this vital sector, which sustains a huge supply chain, the long term effects are going to be economically devastating not just for Liverpool and the city region, but for Britain.”
It comes following reports from metro mayor Steve Rotheram said Merseyside’s economy may collapse if the government does not step in to help.
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