A new rescue deal has been unveiled to support jobs and firms in York today - with a focus on hospitality and leisure.

Chancellor Rishi Sunak announced three new measures in a bid to support employees and businesses survive the winter and a second spike of coronavirus.

He told the House of Commons that cash grants of up to £2,100 a month would be provided to firms in Tier 2 areas including York - mostly in the hospitality and leisure sectors.

The value of grants for those who are self-employed will also be doubled.

LIVE: Chancellor's announcement on Tier 2 funding

Changes to the Job Support Scheme were also outlined - for companies who have been hit and are seeing lower demand due to the COVID-19 outbreak.

Employees will only need to work one day a week to be eligible.

As part of this measures, the government will significantly reduce the amount employers have to contribute.

"It is clear that even businesses that can stay open are facing profound uncertainty," he said.

Chancellor Rishi Sunak said there are difficult days and weeks ahead.

He told the Commons: “Let me speak first to the people of Liverpool, Lancashire, South Yorkshire and Greater Manchester and indeed other areas moving into or already living under heightened health restrictions.

“I understand your frustration, people need to know this is not forever. These are temporary restrictions to help control the spread of the virus.

“There are difficult days and weeks ahead, but we will get through this together. People are not on their own. We have an economic plan that will protect the jobs and livelihoods of the British people wherever they live and whatever their situation.”

Rishi Sunak said a tiered approach is the right way to control the spread of the virus.

He said: “Just as we have throughout this crisis, we will listen and respond to people’s concerns as the situation demands.

“And I make no apology for responding to changing circumstances and so today we go further.”

He added: “The evidence is clear – a regional, tiered approach is the right way to control the spread of the virus.”

Rishi Sunak told MPs that “it is clear that even businesses who can stay open are facing profound economic uncertainty”.

Informing the Commons that he had spoken to hospitality representatives on Thursday morning, the Chancellor said: “Their message was clear – the impact of the health restrictions on their businesses is worse than they hoped.”

Mr Sunak added: “So I am taking three further steps today.”

Rishi Sunak announced that businesses in Tier 2 areas will receive further financial support.

He told MPs: “First, I am introducing a new grant scheme for businesses impacted by Tier 2 restrictions, even if they aren’t legally closed.

“We will fund local authorities to provide businesses in their area with direct cash grants.

“It will be up to local authorities to decide how best to distribute these grants, giving them the necessary flexibility to respond to local economic circumstances.

“But I am providing enough funding to give every businesses premises in the hospitality, leisure and accommodation sectors a direct grant worth up to £2,100 for every month Tier 2 restrictions apply.

“That is equivalent to 70% of the value of the grants available for closed businesses in Tier 3.”

Rishi Sunak announced that the grants can be backdated to August.

The Chancellor said: “Crucially, I am pleased to confirm these grants will be retrospective. Businesses in any area which has been under enhanced restrictions can backdate their grants to August.

“I am pleased to confirm that the backdating of the new grants means we are being more generous to businesses and places which have been under higher restrictions for longer.”

Chancellor of the Exchequer Rishi Sunak told the Commons the Government is making the Job Support Scheme “more generous for employers”.

He added: “To protect jobs, we are making the Jobs Support Scheme more generous for employers. If businesses are legally required to close as we’ve already outlined the Government will cover the full cost of employers paying two-thirds of people’s salary where they can’t work for a week or more.

“For businesses who can open it is now clear the impact of restrictions on them particularly in the hospitality sector is more significant than they had hoped.

“So, I am making two changes to the short-time work scheme to make it easier for those businesses to keep staff on rather than make them redundant.

“First, under the original scheme employees had to work for 33% of their normal hours. Now we will ask them to work only 20% of those hours.

“Second, the employer contribution for the hours not worked will not be 33% as originally planned, or even 20% as it is in the October furlough scheme, it will reduce to 5% and the scheme will apply to eligible businesses in all alert levels.”

Rishi Sunak said the plan would mean “jobs will be protected” as he also outlined a boost for the self-employed.

He told the Commons: “Businesses that are not closed but face higher restrictions in places like Liverpool, Lancashire, South Yorkshire and Greater Manchester, as well as the devolved nations, will be able to access greater support.

“These changes mean more employers can access the scheme and more jobs will be protected.”

He added: “I’m increasing our contribution to the incomes of the self-employed as well. Today we are doubling the next round of the self-employed income support from 20% to 40% of people’s incomes, increasing the maximum grant to £3,750.”

He concluded: “This is our plan. A plan for jobs, for businesses, for the regions, for the economy, for the country. A plan to support the British people.”