Sky Business News Articles

Balfour Beatty, one of the UK’s biggest construction groups, is kicking off the search for a new chairman.
Sky News has learnt that the FTSE 250 company, which is one of the key contractors on the HS2 high-speed rail link, has appointed headhunters at Egon Zehnder to identify a successor to Philip Aiken.

Sources said that Mr Aiken planned to step down at or around its 2021 annual meeting after six years in the post.

Image: Philip Aiken is seen with fellow Aussie Kylie Minogue at an Australia Day dinner in 2015
Alongside Leo Quinn, the chief executive, Mr Aiken has stabilised Balfour Beatty’s finances and pleased investors by returning the company to a position of strong growth prior to the coronavirus pandemic.
The chairman, an Australian who previously ran BHP Billiton’s energy business, also chairs Aveva, the FTSE 100 software company which is in the process of acquiring OSIsoft, a US-based rival, for $5bn.

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The search for Mr Aiken’s successor at Balfour Beatty is being led by Stephen Billingham, the senior independent director.

The company was in a precarious position when the current chairman took over, having issued a string of profit warnings and seen a merger with rival Carillion collapse during the previous 12 months.

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Less than three years later, Carillion had been forced to call in liquidators after failing to secure an emergency bailout from the government or private shareholders.
Like many London-listed companies, Balfour Beatty has been forced to shelve dividends during the course of this year.

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Its shares, however, are modestly higher during the last 12 months, reflecting investors’ confidence in its prospects amid government pledges to invest substantially more in major infrastructure projects.
Balfour Beatty declined to comment on Monday.

Speculation that the Bank of England may be contemplating a move to negative interest rates has been further stoked.
The Bank said that Sam Woods, its deputy governor for prudential regulation and chief executive of the Bank’s Prudential Regulation Authority, had written to lenders to ask how ready they were for Bank Rate moving to zero or even going negative.

In the letter, Mr Woods wrote: “We recognise that a negative policy rate could have wider implications for your firm’s business and your customers.

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“The Bank and PRA will consider the wider business implications, including on financial stability, safety and soundness of authorised firms and pass-through to the wider economy.
“This letter, however, is seeking information to understand firms’ operational readiness and challenges with potential implementation, particularly in terms of technology capabilities.”

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Mr Woods said that responses to his letter would help the Bank identify whether there were any technical operational challenges involved with implementing a zero or negative Bank Rate. He said it would help the Bank consider how best to prepare for such an event and prevent any unintended operational disruption.

He went on: “It is important for the Bank, PRA, and firms to understand the implications of these potential approaches to implementing a zero or negative Bank Rate, since the MPC may see fit to choose various options based on the situation at the time.”

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The news ought not to come as a surprise.
Andrew Bailey, the governor of the Bank, said in May that negative interest rates were being actively reviewed.

Image: Andrew Bailey has said negative rates are in the Bank’s toolbox
Meanwhile, only last month, the Bank said it wanted to engage with lenders on the “operational considerations” of a negative policy rate.
The Bank stressed that the sending of the letter was “not indicative that the MPC will employ a zero or negative policy rate”.
Yet the letter will nonetheless heighten speculation that such a move is coming. The money markets are already beginning to price in negative interest rates. Both two-year and five-year gilts (UK government bonds) already have negative yields, in other words, anyone lending to the government by investing in gilts is effectively paying for the right to do so.
The question is what the impact will be on savers, borrowers and the banks themselves.
A number of central banks have already introduced negative interest rates during the decade following the global financial crisis.
Denmark’s Nationalbank, the Danish central bank, was the first to introduce negative interest rates in 2012.
It has since been followed by the European Central Bank, the Swiss National Bank, the Riksbank in Sweden and the Bank of Japan. In December last year, the Riksbank became the first central bank to announce it was moving away from negative interest rates, taking its main policy rate back to zero.
The experience of these countries gives us some idea what might happen were the Bank to adopt a similar policy here.
The evidence, certainly from the euro area, is not especially reassuring.
One of the main reasons the European Central Bank adopted negative interest rates was to encourage banks, especially in the eurozone ‘periphery’, to lend more.

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The case for cutting rates as low as -3%

However, in a recent note to clients, David Owen, chief European economist at the investment bank and brokerage Jefferies International, noted: “When it comes new bank lending, there is no obvious evidence that the introduction of negative interest rates significantly altered the underlying behaviour of banks in the periphery in either direction.
“The banks in Italy and Spain were in the process of deleveraging and shrinking assets prior to 2014 and that seems to have simply carried on after [negative interest rates] were implemented.”
According to Mr Owen, the experience in the eurozone may not be the best guide to what might happen in the UK, because the latter may have a higher “reversal rate” – the rate at which very low or negative interest rates actually deter banks from lending more rather than encouraging them to do so.
For that reason, the Bank may be looking as closely at the experience in Sweden and Denmark as it is the eurozone.
Again, the findings are not very encouraging, with many economists now of the view that negative interest rates – because they hurt savers – merely encourage households to save more and spend less.
This can be illustrated, for example, in the fact that the inflation rate in economies such as the eurozone and in Sweden remains well below target.
Allan Monks, of the economic and policy research team at JP Morgan Securities, believes this may be why the Bank has been steadily turning up the volume in its discussions on negative rates.
He told clients recently: “There is an alternative theory as to why the Bank keeps talking so frequently about [negative interest rates] despite not being close to delivering it.

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Should Bank of England consider negative rates?

“That is because it wants to warn people far in advance so there won’t be such a great shock if it does happen. One key issue around negative rates is how the policy affects confidence.
“The Bank is probably hence watching the reaction from the public very closely, and this is a factor that will feed back into its final decision.”
And, again, the comparison with the Scandinavian economies is not a precise one. The Danes, for example, used negative interest rates at the outset mainly because they wanted to bring down the value of the kronor against the euro.
It is well known that negative interest rates further squeeze the profitability of the banks.
Not only does it squeeze further the “net interest margin” – the difference between what it pays savers and charges borrowers – but, where commercial lenders have to pay their central bank to deposit with it, this also eats into their profits.
Under those circumstances, it would be no surprise to see banks introducing more charges on accounts, as a way of recouping the cost of holding money. This has been the experience in Switzerland.
Banks may even start charging some savers a negative interest rate themselves. That happened when, in September last year, Jyske Bank of Denmark became the first lender in the country to charge some customers for leaving money on deposit, charging savers with more than 7.5million kronor (£927,000) an annual interest rate of 0.6%. UBS in Switzerland has done something similar for savers with more than £450,000 on deposit.

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If customers fear they may be charged for leaving their savings on deposit, this might even have the baleful effect of triggering a run on banks. Even in less extreme cases, customers would be more inclined to hoard banknotes, preferring to run the risk that the mice, rather than the banks, will gnaw away at their savings. It is no coincidence that sales of safes in Japan doubled after the BoJ launched negative interest rates.
So, if savers were to suffer under negative interest rates, would it follow that borrowers would benefit?
Not necessarily. For a start, many mortgages in the UK are fixed, which means that the banks would not pass on any further rate cuts until a borrower’s existing home loan deal had expired. Meanwhile, a number of floating or variable rate mortgage deals carry small print, stating that interest rates will never go below zero.
That said, it is perfectly possible that some lenders might follow the example of Jyske Bank, which in August last year launched a 10-year mortgage with an interest rate of -0.5%. It worked by the bank reducing the amount left outstanding on the loan by more than the mortgage borrower repaid each month.
But homeowners would be unwise to expect too many deals like that in the UK.
If negative interest rates were bad for savers and indifferent for borrowers, they would be catastrophic for pension funds, since they would further magnify the liabilities of schemes.
Companies would be forced to put ever increasing sums into reducing scheme deficits – reducing their ability to invest in their business in the process. Even workers in generous ‘final salary’ pension schemes – as with university and college lecturers in recent times – would probably be asked to raise their contributions.
In short, negative interest rates would have a lot of malign consequences. And, as the experience of economies like the eurozone and Switzerland have shown, they are difficult to escape once implemented.

A new three-tier system of coronavirus restrictions is being introduced in England, Boris Johnson has announced, with Liverpool put in the highest tier.
The Local COVID Alert Levels – “medium”, “high” and “very high” – will be implemented in different areas depending on local infection rates.

The move, planned to come into force on Wednesday, is aimed at simplifying the range of different COVID-19 restrictions that were already in place across various parts of England.
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Image: Boris Johnson told MPs he could not ‘let the virus rip’ across the country
There were 13,972 new cases of coronavirus in the UK announced on Monday, with 50 more deaths recorded of people who tested positive within the previous 28 days.

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The prime minister warned the “stark reality” of a second wave of coronavirus infections had seen the number of cases quadruple in the last three weeks, with more people now in hospital with the disease than had been before the UK entered its national lockdown in March.

However, Mr Johnson told MPs he did not believe it would be the “right course” to put the country back into national lockdown.

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He also dismissed suggestions that the public’s patience for restrictions had now been “exhausted” and the government should “let the virus rip” across the country.
And he argued that shielding the vulnerable and elderly while allowing the virus to take hold among younger people was “no answer”.
“Because the virus would then spread with such velocity in the general population that there would be no way of stopping it from spreading among the elderly,” the prime minister added.

How does the three-tier COVID local lockdown system work?

Mr Johnson said the country was already suppressing the R rate of infection “well below its natural level”, but added: “We need to go further.”
Explaining the new system, Mr Johnson said the medium level will cover a significant part of England and includes the current national restrictions such as the “rule of six” and the 10pm curfew for pubs, bars and restaurants.
The high level will see people prevented from socialising with other households indoors, although support bubbles will still be permitted.
In these areas, the rule of six will continue to apply outdoors in public spaces, as well as private gardens.
Most of those areas already living under local restrictions – such as Greater Manchester, West Yorkshire and the North East – will move into this category.
The prime minister said that, following rising infection rates, Nottinghamshire, East and West Cheshire, and a small area of High Peak will move into the high level.

The very high alert level will see people banned from socialising with other households both indoors and in private gardens, while bars and pubs will be closed unless they can operate as restaurants.
Alcohol could be served in pubs operating as restaurants in these areas, but only as part of a meal.
Residents will also be advised against travelling in and out of these areas, while it will be up local politicians as to whether other leisure venues such as gyms and casinos should also close.
However, non-essential shops, schools and universities will remain open.
These restrictions will have to be renewed every four weeks and will be kept under “constant review”, the prime minister said.
Mr Johnson told MPs that the Liverpool City Region will be placed in the very high level and, following talks with local leaders, that indoor gyms, fitness and dance studios, sports facilities, leisure centres, betting shops, adult gaming centres and casinos will close alongside pubs and bars in the region.
Wedding receptions will not be permitted and people are being urged to avoid staying overnight in another part of the UK.
A total of 280 patients are now in Liverpool hospitals with COVID-19, Sky News has learnt.
This means 17% of their patients have coronavirus.
If this reaches 20%, which it is on course to in the next few days, it means the trust here will have to reduce day-to-day procedures and tasks.
The government will give the region £14m to enhance enforcement and the NHS Test and Trace scheme.
In very high areas, the NHS “could soon be under unbearable pressure without further restrictions”, the prime minister warned.
He highlighted how Chancellor Rishi Sunak last week announced further economic support for those businesses forced to shut due to local restrictions.
The prime minister also said the government would provide local authorities across England with around £1bn of new financial support.
In very high areas, Mr Johnson pledged more support for local test and trace schemes, more funding for local enforcement of restrictions, and the offer of help from the Armed Forces.

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Starmer: PM ‘running to keep up with COVID’

The prime minister told MPs that the months ahead will “test the mettle” of the country, but he said he had “no doubt at all that together we will succeed” and that the UK was “becoming better and better at fighting this virus”.
MPs will be given a vote to approve the new three-tier system on Tuesday.
A postcode search on gov.uk, as well as the NHS COVID-19 app, will show which local alert level applies in each area.
Labour leader Sir Keir Starmer said he was “deeply sceptical that the government has actually got a plan to get control of this virus, to protect jobs, or retain public trust”.
“It increasingly feels like the prime minister is several steps behind the curve and running to catch up with a virus that he has lost control of long ago,” he said.
Steve Rotherham, mayor of the Liverpool City Region, told Sky News he was “still waiting” for the “scientific evidence” behind the new measures.
He also issued a joint statement, along with the leaders of local councils, to reveal an economic support package had yet to be agreed with the government.
“The national furlough scheme is inadequate and risks pushing tens of thousands of low paid workers below the national minimum wage, while the direct support to businesses is also less than that offered during the national lockdown,” the statement said.
London mayor Sadiq Khan’s office warned the capital could move to further restrictions as soon as this week due to a “rapidly increasing” number of cases.
A spokesperson for the mayor said: “As of today, London is at ‘medium’ in the government’s new alert levels.
“However, Londoners should understand that this could change very quickly – potentially even this week.”
The prime minister set out the details of the new three-tier system in the House of Commons after chairing a meeting of the government’s emergency COBRA committee on Monday morning.
Mr Johnson will later hold a news conference with Chancellor Rishi Sunak and England’s chief medical officer Chris Whitty later.

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Medical officer warns of ‘baked in’ deaths

England’s deputy chief medical officer, Professor Jonathan Van-Tam, gave a public briefing on the latest coronavirus infections across the UK.
He revealed that NHS Nightingale hospitals – set up during the first peak of COVID-19 infections to stop the health service becoming overwhelmed – are being told to prepare to start accepting patients in Manchester, Sunderland and Harrogate.

Boris Johnson will this week seek to portray Britain as a welcoming destination for foreign investors by unveiling plans for a Downing Street operation aimed at securing backing for multibillion-pound infrastructure projects.
Sky News has learnt that officials at Number 10 are coordinating the launch of a unit called the Office for Investment, which insiders say will be tasked with identifying and coordinating major initiatives including the delivery of new gigafactories.

It is understood to have been orchestrated by Lord Grimstone, the minister for investment, who was recruited into government by the prime minister earlier this year.

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PM slammed for lack of green investment

Lord Grimstone, a former chairman of the asset manager Standard Life Aberdeen, was the architect of Margaret Thatcher’s privatisation spree during the 1980s.
Dominic Cummings and Sir Edward Lister, Mr Johnson’s two closest advisers, are also understood to have been closely involved in the plan.

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By basing the new investment office in Downing Street, the PM hopes to send a signal to foreign investors that their interest in ploughing money into the British economy will be “closely chaperoned”, according to one insider.

A new team is to be recruited to work alongside Lord Grimstone, who will chair the Office for Investment, they added.

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Its creation is expected to be announced alongside the publication of the National Security and Investment Bill, which will hand the government new powers to scrutinise overseas acquisitions of British companies and assets.

Image: Lord Grimstone will chair the Office for Investment
Some members of Mr Johnson’s administration have expressed concern that the bill may act as a deterrent to foreign investors, just as the UK-EU transition period reaches its conclusion.
One official said the new investment office would provide “a clear demonstration of the UK’s openness”.
A No 10 spokesperson said: “This government recognises that foreign investment will play a key role in our economic recovery from COVID-19 and is a major part of our plan to boost productivity by backing businesses to create good jobs and develop skills.
“The UK is already one of the most attractive countries for overseas investors and we’ll work hard to ensure that remains the case.”

The pay gap between white and ethnic minority employees has fallen to its lowest level since 2012, new data suggests.
The Office for National Statistics (ONS) identified a 2.3% gap in earnings between white British and ethnic minority employees from England and Wales in 2019 – the smallest gap since 2012, when it was 5.1%.

White British employees earned an average of £12.40 per hour, with ethnic minority groups earning an average of £12.11.
Despite this, there are still varying outcomes when looking at individual ethnic minority groups, with the majority earning less than white British employees.
In 2019, people from Chinese, white Irish and Indian backgrounds all earned higher hourly pay than white British employees.

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This difference has been attributed to the fact that employees with a higher level of education are also paid more.

Among workers from a Chinese background, 75% have a degree, while only 34% of white British employees have one.

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Workers from Bangladeshi, Pakistani and Arab ethnicity groups consistently earned less than white British employees from 2012 to 2019.
The most affected were employees from Bangladeshi and Pakistani groups, who had a gap of 15% and 16% respectively in their earnings when compared with white British employees.
The data also shows that, in most ethnic groups, men earned more than women.
There are also differences in the ethnicity pay gap across regions – it is largest in London at 23.8%, and smallest in Wales at 1.4%.
In terms of age, the gap in earnings is greater among those aged 30 years and over in comparison to those aged between 16 to 29 years old.
An explanation for this is the fact that labour market outcomes are improved for second and third-generation migrants.
When factoring in age, sex, marital status, children, qualifications, country of birth and location of employees, the gap is narrowed for many ethnic minority groups.
The ONS said: “Adjusting for pay determining characteristics influences the pay gaps observed, with a narrowing of pay gaps for most ethnicities.
“This suggests that differences in the average characteristics of different ethnic groups was influencing the unadjusted pay gap, often overstating the difference.”
Dr Halima Begum, director of the Runnymede Trust, told Sky News: “This data is not the full picture, as it illustrates pre-COVID levels of pay inequality.
“We know that BME people are disproportionately likely to work in sectors shut down as a result of lockdown, and to have experienced negative financial impacts due to the coronavirus crisis and lockdown.
“We cannot let COVID-19 turn the clock back on race equality, and the government must act now to ensure that the economic impact of this crisis does not fall on BME people.”

Members of Britain’s hospitality sector have threatened a legal challenge to the “catastrophic” restrictions facing the industry, which are set to be tightened further in England’s coronavirus hotspots.
Sacha Lord, night-time economy adviser for Greater Manchester, said the action – backed by the Night Time Industries Association (NTIA) – would be brought if the region was tipped into the harshest tier of the government’s new local restrictions.

That was avoided on Monday as only Liverpool City had agreed to come under the ‘very high’ level of measures, which include the temporary closure of all pubs and bars.
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Local lockdowns could be lifted by Christmas

The proposed legal action, also backed by pub and beer groups, would seek a judicial review of such a move, arguing there is no evidence to support the suggestion that hospitality venues have contributed to the spread of COVID-19.

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Pubs, restaurants, night clubs and live music venues have been devastated by the impact of coronavirus restrictions.

At the same time, the government’s furlough subsidy for temporarily laid-off workers is coming to an end and will be replaced by new jobs support measures.

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NTIA chief executive Michael Kill said: “The industry has been left with no other option but to legally challenge the so called ‘common sense’ approach narrative from government, on the implementation of further restrictions across the North of England.
“These new measures will have a catastrophic impact on late night businesses, and are exacerbated further by an insufficient financial support package presented by the chancellor in an attempt to sustain businesses through this period.
“This next round of restrictions are hugely disproportionate and unjust, with no scientific rationale or correlation to PHE (Public Health England) transmission rates, when compared to other key environments.
“Systematic closure of businesses across the UK must be challenged when there is no clear evidence or reason.”

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‘There’s been a murder’ of Glasgow’s hospitality sector

Mr Lord said local leaders had not been presented with “any tangible scientific evidence to merit a full closure” of hospitality in the area.
But culture secretary Oliver Dowden said ministers have “robust evidence for doing this”.
He told Sky News: “The evidence shows that there is a higher risk of transmissions in hospitality settings. There is academic evidence from the United States.”

Top Premier League clubs have been threatened by the government over a proposal that could see a major shake-up to the structure and finances of English football.
Culture Secretary Oliver Dowden told Sky News he was “quite sceptical” about the plan – proposed by Liverpool’s owners Fenway Sports Group (FSG) and backed by Manchester United – as he hit out at “backroom deals”.

He warned that he would have to “look at the underlying governance of football” if the controversial bid – under the banner of Project Big Picture – went ahead.
It includes proposals to boot two teams out of the Premier League, scrap the League Cup and Community Shield, and abolish the one-club, one-vote principle.

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Culture Sec warning to premier league

The plan may prove appealing to English Football League (EFL) teams – those in the Championship, League One and League Two – because they would get 25% of all Premier League and EFL revenues, with an advance of £250m made available early to help during the coronavirus pandemic.

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Rick Parry, chair of the EFL and a former Liverpool chief executive, has already welcomed the blueprint, which was revealed on Sunday.

“This would produce long-term sustainability for all of our clubs,” he said.

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“It would narrow the gap between the Championship and the Premier League.
“It would abolish parachute payments, which create a major imbalance within the Championship. Plus, there’s a short-term package of immediate relief.”
Talks are said to be under way between the remaining “big six” Premier League clubs – Manchester City, Tottenham, Arsenal and Chelsea – to try and win them over.

Image: Other top clubs including Arsenal and Chelsea could also back the plan
But Mr Dowden, who’s government brief includes sport, was asked on the Kay Burley programme if the plan would protect smaller clubs or simply be a power-grab by the bigger ones.
“I fear it’s the latter and I’m quite sceptical about this,” he said.
“There’s a lot of money in the Premier League. Just look at the last transfer window, over £1bn – I believe that is more than the next four largest leagues in Europe put together – has been spent in that window.
“There is the money in the sport. They should be getting together to sort the sport out.
“I’m afraid if we keep having these backroom deals and all these other things going on, we will have to look at the underlying governance of football.”

Image: The Premier League said some parts would have a ‘damaging impact’
Mr Dowden said the Conservatives had promised a fan-led review of football governance and “the events I’ve seen in the last few weeks have made this more urgent again”.
He added: “I’m sure many fans watching this programme will be concerned about some of the things going on and think to themselves ‘why can’t this sport get its act together’ – I should say at the Premier League and EFL level – in order to help themselves.”
And the Premier League has been similarly negative, saying several parts of the plan “could have a damaging impact on the whole game”.
It said in a statement on Sunday: “The Premier League has been working in good faith with its clubs and the EFL to seek a resolution to the requirement for COVID-19 rescue funding. This work will continue.”

British Airways (BA) chief executive Alex Cruz is stepping down from the role with immediate effect, owner International Airlines Group (IAG) has said.
IAG boss Luis Gallego said the shake-up came as the company navigated “the worst crisis faced in our industry” – which has seen demand crushed by the coronavirus crisis and thousands of jobs axed.

BA’s new chief executive will be Sean Doyle, who is being brought in from Irish carrier Aer Lingus – also part of IAG.

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Walsh: ‘It’s going to involve pain for everybody’

It was one of a series of management changes announced on Monday by Mr Gallego, who took over as IAG chief executive a month ago after the retirement of Willie Walsh.
Mr Gallego said: “We’re navigating the worst crisis faced in our industry and I’m confident these internal promotions will ensure IAG is well placed to emerge in a strong position.”

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He said Mr Cruz had “worked tirelessly to modernise the airline”, adding that he had also “led the airline through a particularly demanding period and has secured restructuring agreements with the vast majority of employees”.

Mr Doyle, BA’s new boss, previously worked at the airline for 20 years before moving to head Aer Lingus two years ago.

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Mr Cruz will remain non-executive chairman of BA for a “transition period” before also handing over that role to Mr Doyle.
BA has been undergoing a painful restructuring as it counts the cost of the coronavirus crisis and slashes flight schedules.

Where jobs are being lost across the UK economy

Last month it revealed progress in its negotiations with unions over changes to pay and conditions as it battles to save costs.
But it also said a total of up to 13,000 were expected to lose their roles at the airline, with more than 8,000 having already gone.
BA’s handling of the restructuring drew accusations of a “despicable” fire-and-rehire approach, but Mr Cruz told MPs last month that it was on course to secure agreement with trade unions.
He also reiterated that the impact of the pandemic means it is “fighting for its survival”.
Sky’s coronavirus jobs tracker shows aviation has been the sector worst hit by the crisis with easyJet, Virgin Atlantic, Ryanair and Gatwick also among those making big cuts.

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Heathrow chief exec: PM needs to ‘get a grip’

Last week, Manchester Airports Group – owner of Manchester, Stansted and East Midlands airports – announced plans to axe nearly 900 roles as the Treasury’s furlough scheme comes to an end.
The announcement of a government task force to look at using testing to try to reduce travellers’ quarantine periods received a lukewarm response, with no timeframe for a testing regime to be introduced.
Monthly passenger statistics published by Heathrow on Monday underlined the scale of the crisis, showing a decline of 5.5 million in numbers in September – or 82% – compared with a year earlier, to 1.2 million.
Mr Cruz had a tough period in charge of BA even before the pandemic struck, hit by strike action a year ago and a huge customer data breach in 2018 which saw it facing a fine of £183m.

The culture secretary has urged artists struggling financially during the coronavirus pandemic to “hang on in there for as long as they can”.
Oliver Dowden was speaking at the Old Vic in Bristol as he announced the latest recipients of the government’s £1.57bn Culture Recovery Fund.

Around 1,385 arts institutions in England will share £257m of grants in the biggest tranche of money awarded so far during the coronavirus pandemic.
Recipients include the Old Vic in Bristol, Yorkshire Sculpture Park in Wakefield, The London Symphony Orchestra, and Liverpool’s Cavern Club.
The arts sector has suffered significantly due to COVID-19 restrictions, with many venues closed and many creatives unable to work.

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When asked if struggling artists should persevere or find other work, Mr Dowden told Sky News he hoped they “would hang on in there for as long as they can”.

The Culture Recovery Fund, overseen by the Arts Council, is aimed at institutions rather than individuals but those in the industry argue that freelancers, who are the bedrock of the sector, need more support.

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Mr Dowden acknowledged it was a “desperately difficult time for the arts” and told Sky News that freelancers would benefit when places like the Old Vic get their funding – £600,000 they have been awarded for new hybrid performances.

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Many UK theatres face permanent closure

“In doing this, it is creating job opportunities for people, so you’ll be able to employ freelancers who will provide the staging and the lighting and all these other things,” he said.
Charlotte Geeves, chief executive of the Old Vic, told Sky News that she understood the government’s rationale and was very grateful for the money they had been awarded but the sector needs more help and freelancers need more support.
“We simply can’t employ everyone at the same time. It takes time, so there is a risk that skilled people will fall out of the industry and that’s what we’re desperate to protect – not losing the diverse nature out of the industry because they can’t afford not to work,” she said.

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Some 400 musicians gathered in Parliament Square this week to demand more help for freelancers. According to The Musicians’ Union, around a third have received no government support since March and the same proportion were considering leaving the profession out of necessity.
Theatres and the live events industry have also been calling for a government-backed insurance scheme, similar to the one provided to the film and TV industry, and a date for reopening without social distancing.
Mr Dowden told Sky News: “I can’t give a date with confidence”, but said he is looking at the issue ”from every angle”, including using mass testing to allow people back into theatres.

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Theatres in the UK are ‘at the point of no return’

The culture secretary said he has spoken with industry heavyweights such as Andrew Lloyd Webber and Cameron Mackintosh and understood the importance of giving the certainty of a reopening date but “that certainty has to be credible”.
Down the road from the Old Vic in Bristol, The Exchange is a music venue with a capacity of 250. It has been closed since March and cannot reopen because social distancing restrictions have reduced its capacity to just 22.
Matthew Otridge, who runs the venue, told Sky News they applied for the Culture Recovery Fund but feared not every venue would be saved, with consequences for the music industry.
“I think it’s going to be oversubscribed and there are going to be a lot of venues which get left behind and there is going to be a huge knock-on effect of the whole music touring ecology.”
He said if towns were left without a music venue, it would not only limit opportunities for audiences but also for potential musicians, adding: “Some bands that could have gone on to be world beaters will simply never exist because the opportunities aren’t there”.

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Performers warn of the death of panto

According to the government, the Culture Recovery Fund is aimed at safeguarding the future of cultural organisations with key national and local significance. Organisations receiving funding include:
Finborough Theatre, London – £59,574
Hallé Concerts Society, Manchester – £740,000
Royal Liverpool Philharmonic – £748,000
London Symphony Orchestra – £846,000
Wigmore Hall, London – £1m
Cavern Club, Liverpool – £525,000
National Maritime Museum Cornwall, Falmouth – £485,000
Exeter Northcott Theatre, Exeter – £183,399
Beamish Living Museum of the North – Co Durham £970,000
Royal Academy of Dance, London – £606,366
Yorkshire Sculpture Park, Wakefield £804,013
Hackney Empire, London – £585,064
Theatre by the Lake, Keswick, Lake District – £878,492
Birmingham Royal Ballet – £500,000
Bristol Old Vic Theatre – £610,466
Young Vic, London – £961,455
Storyhouse, Chester, Cheshire – £730,252
Curve, Leicester – £950,000
Lighthouse, Poole – £987,964
Wiltshire Creative- £446,968
Grimm & Co, Rotherham, Yorkshire – £86,000
Theatre Peckham, London – £150,000

Liverpool city region is expected to go into the highest tier of England’s new lockdown system and the measures could last up to six months, Sky News understands.
Pubs, bars, gyms, casinos and bookmakers are expected to close on Wednesday, while restaurants, schools and universities are set to remain open.

Local leaders have been in dialogue with central government and have asked for a monthly review of the situation.
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The prime minister will chair a top level COBRA committee meeting today “to determine the final interventions” and will then unveil the new three-tier system in parliament later.

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Steve Rotheram, the mayor of Liverpool city region, said a deal had not yet been reached, suggesting measures could still vary from those which are expected.

He said: “Since Friday, myself, and the leaders of our local councils have been in dialogue with the government.

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“Government have been clear from the start that they plan on placing the Liverpool city region in tier 3 and plan on announcing this tomorrow [Monday].

Image: People in Liverpool were out on Saturday night, ahead of the expected new restrictions
“Whilst we have asked for the evidence to support that decision, none has been forthcoming.
“Throughout, we have been clear that new restrictions must come with the financial support to protect local jobs and businesses.
“No agreement has yet been reached on this point and negotiations are ongoing. As in all these things, the devil will be in the detail. A deal is not a deal until it is agreed.”

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Liverpool recorded the second-highest infection rate in the country in the two weeks to 4 October.
There were 4,593 confirmed cases, or 928.2 per 100,000 people.
The neighbouring council area of Knowsley was top, with 1,412 cases and an infection rate of 944.
Manchester is also likely to be in the highest tier of restrictions when the new system comes in.
Five of its MPs have warned the prime minister about the “devastating impact” of shutting businesses such as pubs.

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In a letter, they said “jobs, livelihoods and businesses” would be damaged and that it would lead to more illegal gatherings.
The proposed system is expected to see different parts of England put in different categories, with areas in the highest level facing the toughest measures.

It could affect millions in the north and comes amid mounting concern over the number of coronavirus cases and intensive care capacity at hospitals.
The Manchester MPs’ letter was sent by Lucy Powell, Jeff Smith, Mike Kane, Afzal Khan and Graham Stringer.
They argued that a big proportion of cases were among students and confined to halls of residence.
They also said hospitality firms “constitute a very small proportion of infection rates” so authorities want powers to close individual companies that aren’t safe.
Leaders across northern England have criticised the plans, which they say have been drawn up without consulting them from the outset.
They have also not ruled out legal action and say the new financial help announced by the chancellor this week is not good enough.

The scheme will cover two-thirds of pay for people at businesses forced to shut due to the stricter rules.
Communities Secretary Robert Jenrick has rejected claims of a lack of consultation.
He told Sky’s Sophy Ridge on Sunday that the government had been “designing” restrictions for COVID-19 hotspots “in conjunction with people who know those places best”.
Asked on what basis areas will move between tiers, he said people would need to “wait to see what the PM says” but that a range of factors had been considered.
Cases per 100,000 are “significant” but also hospitalisations and the nature of infections, said Mr Jenrick.

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Jenrick denies ‘ducking questions’ on lockdown

“Though the number of cases is rising rapidly across the country there are still huge variations,” he added.
“If you go to North Norfolk the latest statistics showed that the number of cases is around 19, if you go to Manchester it’s well over 500.
“So, it is right that we pursue a localised approach.
“That must be the way forward because none of us want to see a return to blanket national measures – that would be the alternative.”
Latest coronavirus figures reported on Sunday recorded 12,872 more cases and 65 deaths.
It is a slight fall from Saturday, when there were 15,166 cases and 81 deaths.
It comes after England’s deputy chief medical officer warned the country was at “a tipping point similar to where we were in March”.
Professor Jonathan Van-Tam urged people to stick to key social distancing and hygiene measures to keep transmission low and stop the NHS being overwhelmed.