LABOUR is calling for £2 billion in business rates relief returned by supermarkets to the Treasury to be reallocated to support 175,000 businesses forced to close in Tier 4 areas. 

Following Prime Minister Boris Johnson’s announcement that London and parts of south-east England will be subject to the new top level of restrictions until December 30, 175,000 businesses were forced to shut their doors.

This includes more than 13,000 hair and beauty salons, over 8,600 gyms and leisure centres and more than 45,000 retail businesses, including shops selling clothes, homeware and books.

The vast majority of these businesses, including 99 per cent of hairdressers and beauty salons and 92 per cent of gyms, are only able to access an emergency cash grant worth about half or a third of the support on offer during the national lockdown in March. 

Shadow business secretary Ed Miliband said that the financial aid available was “hopelessly inadequate” and accused his government counterpart Alok Sharma of being “asleep at the wheel.”

Mr Miliband said: “Many shops, leisure and beauty businesses just getting back on their feet have had the rug pulled from under them, joining struggling restaurants and pubs already shut. 

“Businesses are doing the right thing and closing to keep people safe, but ministers are not doing the right thing by them.”

TUC general secretary Frances O’Grady backed Labour’s demand, adding that ministers should not “watch from the sidelines as job losses mount.”

She added that trade unions “stand ready” to work with the government and employers on sectoral recovery plans.