Greater Manchester is set to enter tougher coronavirus restrictions after talks between local leaders and the government ended without an agreement.
Communities Secretary Robert Jenrick, who had set a midday deadline for Greater Manchester moving into Tier 3, said no deal had been struck.
Live updates on Greater Manchester stalemate after deadline passes without a deal
Talks were due to end at noon
“I’m disappointed that despite recognising the gravity of the situation, the Mayor of Greater Manchester has been unwilling to take the action that is required to get the spread of the virus under control in Greater Manchester and reach an agreement with the government,” he said.
Prime Minister Boris Johnson, who is due to hold a news conference in Downing Street at 5pm, has made clear he would impose the move to Tier 3 if the stalemate remains.
It is not clear when the move to Tier 3 will come into effect.
Health Secretary Matt Hancock will deliver a Commons statement at 7pm.
Local leaders have been pushing for the government to grant £75m in total, after ministers offered £22.4m for the implementation of extra measures plus an unspecified sum of “business support”.
They had been racing to secure a compromise by 12pm on Tuesday – the deadline set last night by Mr Jenrick.
Tier 3 would mean greater restrictions on hospitality businesses
A source told Sky’s deputy political editor Sam Coates: “We asked for 75. They offered 60. We came down to 65 but they still wouldn’t shift. 60 was unacceptable because [it was] no better than Lancashire/ Liverpool.”
A government source told Sky’s political editor Beth Rigby that the discussions “fell down over £5m” and “from our point of view we moved a lot”.
Manchester Central MP Lucy Powell said the government “clearly doesn’t really care about supporting businesses and protecting jobs AND protecting health because they are prepared to cause huge breakdown over £5m (a tiny fraction of what they’ve spent elsewhere)”.
“This is politics at its worst, not public health.”
Mr Johnson said the case rate in Greater Manchester tripled in 15 days
Moving Greater Manchester into Tier 3 would take around three million people into the highest band of COVID-19 restrictions, as the UK battles a second spike of coronavirus cases and deaths.
The PM told senior cabinet members on Tuesday that he has “sought to work constructively with leaders across Greater Manchester” but “cases continue to be extremely high across the region”.
“The most worrying rises are in the 60+ age group where the case rate tripled in the 15 days up to 12 October,” he added.
Downing Street later confirmed Mr Johnson and Andy Burnham spoke on the phone around Tuesday lunchtime.
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‘Why do the government hate Manchester?’
Andrew Gwynne, Labour MP for Denton and Reddish, challenged the chancellor in parliament, saying said local leaders are only asking for “proper financial support… after 12 weeks of failed lockdown measures” and asked: “Why does this government hate Greater Manchester?”
Rishi Sunak said he was “disappointed” with Mr Gwynne’s “tone” and politicians should “act in a constructive spirit”, adding he was already “helping the most vulnerable in our society”.
Earlier, Mr Burnham criticised what he called a “provocative” and “late-night ultimatum” by Mr Jenrick.
The mayor of Greater Manchester accused ministers of “trying to penny pinch” with their offer of £22.4m.
But he said he would “accept” Tier 3 being imposed if Mr Johnson chooses to do so, because it is the prime minister’s “prerogative” and he “wouldn’t break the law”.
Business minister Nadhim Zahawi told the Kay Burley show a “good package” of support was already on offer and there could be “more to come”.
And he cautioned swift action was necessary because by the first week of November at the current trajectory, there will be no intensive care unit beds in Greater Manchester.