FEARS of more businesses collapsing and jobs being lost have been raised by today’s announcement that London and some other parts of south-east England will move into highest tier of coronavirus restrictions from tomorrow.

Speaking in the Commons, Health Secretary Matt Hancock confirmed that every London borough will enter Tier 3, along with south and west Essex and the south of Hertfordshire.

Mr Hancock also revealed that a “new variant” of Covid-19 has been identified over the last few days, which may be associated with the faster spread of the virus in the region.

He added that more than 1,000 cases of this strain have been found across England, predominately in the south. 

A number of other countries have identified it in the last few months, the Health Secretary also said.

Having been expected to review the tier system tomorrow, he said that he needed to enforce the changes earlier due to “very sharp exponential rises” in the spread of Covid-19 in the south-east.

Mr Hancock warned that, in some parts of the areas in question, the number of positive test results was doubling every seven days. 

Tier 3 restrictions require pubs and restaurants  to close except for takeaway and delivery services.

Mr Hancock did not use his statement to outline financial support for businesses in Tier 3 areas.

London Mayor Sadiq Khan said that funding for hospitality, culture and leisure was “urgently needed” and that such restrictions could be “catastrophic” for these sectors.

TUC London Region secretary Sam Gurney warned that jobs will be lost and businesses will close “without more support from the government.”

He added that local government needs a “funding boost to help manage the impact” and that households affected by the pandemic need increased wages, benefits and sick pay.

Labour’s shadow health secretary Jonathan Ashworth said that Mr Hancock had been warned that Tier 2 rules would not be enough to contain the virus in the south-east.

The number of cases in London has risen by 30 per cent in a week, and in the east of England by 36 per cent, compared with a national increase of 20 per cent.

Mr Ashworth raised concern over Serco’s contact tracing system leaving “a gaping hole in our defences” while costing £22 billion.

He called on the government to scrap the Serco contract and instead increase funds to public health teams that carry out more efficient contact tracing while receiving a combined total of just £785 million.