Preston warned it would be turned into "an island" if it refused Tier 3 restrictions

City council leader Matthew Brown was seeking a more generous job support scheme than was on offer from the government - but was warned that Preston would face the prospect of travel restrictions if it did not sign up to the deal on the table.

The whole county will now move into the “very high” alert level of Tier 3 from midnight tonight, having been in Tier 2 only since Wednesday.

The government has said that employees of businesses forced to close under Tier 3 restrictions – in Lancashire’s case, non-food pubs and bars – will receive two thirds of their pay.

The original furlough scheme in place during the national lockdown paid out 80 percent of wages.

Cllr Brown said he had held out "until the bitter end" for that level of support to be provided to Lancashire in the coming weeks – and boycotted a meeting with the Prime Minister where the deal was finally done.

“In the end, I was left with no choice.

“The government said that they would look at [the more generous furlough request] and there’d be a discussion with the Treasury – but that’s just civil service talk to say they’re not going to do it.

“There are a number of other leaders that weren’t convinced – but it was Hobson’s choice. They have bullied us into a position where we have got a poor deal and it would have been even poorer if we stayed out of it.

“I was told we’d be an island where people potentially couldn’t travel outside of the city. The funding package we have got for Lancashire also wouldn’t have applied to Preston, putting the rest of the county on favourable terms - and potentially more businesses would have shut in the city,” Cllr Brown said.

Under Tier 3 rules, people are advised to avoid entering a ‘very high’ alert level area – meaning if Preston had remained in Tier 2, people should only have left the city for education or employment purposes.

Lancashire has been given a £42m Tier 3 funding package, but it had been seeking a total of £58m - £50m of which was a request to retain unspent business support grants issued to the county during the national lockdown.

That sum was to be used to set up a discretionary fund to help firms directly or indirectly affected by tougher local lockdown measures. A smaller pot will now be established for that purpose.

Cllr Brown believes even £50m would not have been sufficient to pay the wages of laid-off staff at 80 percent of normal levels during any Tier 3 restrictions - and estimates a further £8m per month would have been required.

There was reported consensus among all 15 Lancashire council leaders when they put their demands to the government last weekend, but that appears to have collapsed in the final frantic hours of negotiations with the government - and each other.

Earlier this morning, Lancashire County Council leader Geoff Driver said he hoped that the deal would not be "scuppered" by some leaders "playing politics".

Speaking on BBC Radio Lancashire, he said: “In two weeks’ time, if we don’t do something about it, the hospitals in Lancashire are going to be over-run – and we shouldn’t be allowing petty party politics to put the people at Lancashire at risk.

“[Some leaders] seem to be asking for more and more to get the government to say we can’t agree to that.

“The deal that’s on the table now is a much better deal than was on the table 24 hours ago,” County Cllr Driver said.

However, South Ribble Borough Council leader Paul Foster said the county had been "bullied and blackmailed" by the government in the latter stages of the negotiations.

"They basically said they would place residents into more draconian measures in those districts that didn’t agree to a deal.

“Several leaders held out because we needed a better deal for our communities and business – the government could easily have afforded it, but wouldn’t support us.

“So when we said we couldn’t agree to something not in the interests of our community, they basically said: “Well, you will do, or we’ll do X, Y and Z to you.

“They were talking about isolating parts of Lancashire Also, when we negotiated that our gyms and leisure centres could stay open across Lancashire – they turned round and said they’d close them in areas that did not agree to the rest of the deal.

“All any of us want is to protect our communities and ensure our businesses can continue – so we’ve got what we've got and now we’ll have to move on as best we can,” Cllr Foster said.

The Tier 3 restrictions, - which include a ban on household mixing in all indoor and most outdoor settings, with the exception of support bubbles - will come into force across Lancashire at midnight.

County Cllr Driver said after the agreement was reached: "Across Lancashire, the coronavirus situation is serious and getting worse. Lancashire's leaders all agree that, as we approach winter, urgent action has to be taken now to ensure the county is not overwhelmed by the virus.

"After major negotiations with government, we have agreed a bespoke deal for Lancashire that means our businesses and residents will receive extra support that will not be available elsewhere in the country.

"I want to thank all of the Lancashire leaders for the constructive and meaningful discussions we have had over the past week. The deal has presented real challenges for some and they have only been able to sign up with reluctance, but we have been willing to work across party lines so that we can hammer this out with government.

"These new restrictions will affect us all, but we know they will be particularly harsh on those who make their living in our hospitality sector. It is a vital and valued part of our economy and we are all committed to maximising the support we can give as a result of this deal."

With the new restrictions come in, the directors of public health for Lancashire, Blackburn with Darwen and Blackpool made a joint plea to the public to stick to the rules.

Dr Sakthi Karunanithi, Professor Dominic Harrison and Dr Arif Rajpura said:

"We are at a very dangerous phase of the pandemic. Infection rates are going up across Lancashire, hospitals are getting busier and people are quite frankly sick of coronavirus and just want life to return to normal.

"That's something we all want, but we have to level with you – it isn't happening any time soon. All of our lives have been affected by coronavirus and will continue to be so until we have a vaccine. Now that Lancashire has entered tier three the next month is critical to getting the virus under control.

"In the meantime, as public health professionals we have a responsibility to do all we can to protect the people of Lancashire and we are working night and day to do so. But you also have a role to play as well to protect yourself, your family and your community. By sticking to the restrictions – even though we know it's hard – and following the simple guidance around hands, face and space you will help limit the spread of coronavirus.

Deputy Chief Constable Terry Woods of Lancashire Constabulary, said: “It’s imperative that we all work together and follow the rules so that the restrictions will be eased sooner.

"None of us want to be in this situation but abiding now will help us bring the infection rates down and safe lives. We’ve taken a common-sense approach to policing the regulations throughout the pandemic and this will not change."

"Our first priority is to engage with people and explain the rules, but we do want to be clear that we will enforce them where we need to, especially around repeat offenders, significant gatherings and people who deliberately flout the regulations and put others at risk.”