Sir Richard Leese, the leader of Manchester City Council, says local MPs have been told tier three restrictions will come into effect in Greater Manchester at 00:01 on Friday.

He also said the government would be giving the region a financial support package worth £20m.

Kevin Fitzpatrick
BBC North West political editor

A rollercoaster week of talks came to a juddering halt over £5m.

After tense meetings, a midday deadline and a threat to impose tier three anyway, all signs pointed to a deal when Greater Manchester’s leaders were offered £60m to help businesses forced to close.

It’s similar, proportionate to population, to what Lancashire and Liverpool City Region had received.

But when the leaders went back for £5m more, ministers said no and the talks quickly broke up.

Both sides accuse the other of refusing to budge as a public battle to pin blame gets under way.

And all the while, 2.8 million residents of Greater Manchester anxiously await their fate under tougher restrictions.

The leader of Manchester City Council, Sir Richard Leese, says the wrangling over a deal for Greater Manchester has left him feeling “tired, deflated and disappointed”.

Image source, PA Media

He said:

Greater Manchester's mayor says he is still willing to do a deal with government over the financial support package for the area.

Image source, Reuters

"At no point today were we offered enough to protect the poorest people in our communities," Andy Burnham says.

He says he is still willing to do a deal "but it cannot be on the terms the government has offered today".

"How can we carry the public with us through this pandemic if we are forcing them to lose their income without supporting them?" he asks.

Greater Manchester Mayor Andy Burnham and the leaders of some of the area's councils are giving a press conference alongside the Peterloo Massacre Memorial in Manchester.

Image source, PA Media

Mr Burnham says he and other local leaders put forward a costed and detailed package of measures "to support people on the lowest incomes" and asked for £50m a month.

Mr Burnham says the money would top up people's salaries to 80%.

"This would cost £90m to the end of the financial year," he says.

He says they were prepared to reduce it to £70m and then to £65m.

"Not what we wanted, what we needed," he adds.

"But the government refused to accept this. At 2 o'clock today they walked away from negotiations," he says.

Greater Manchester Mayor Andy Burnham says £65m was the minimum sum needed to prevent a “winter of real hardship” under tier three restrictions but the government refused to accept this and walked away from negotiations.

Dominic Casciani
Home Affairs Correspondent

Tier three restrictions for Greater Manchester won't just affect the people and the businesses - the police may also find themselves between a rock and a hard place.

Image source, PA Media

They must enforce the lockdown - and the national policing strategy since March has been to "encourage" people to comply, rather than dish out fines all day long.

That fits with the principle of policing by consent - but this situation is unprecedented.

Greater Manchester Police will have to enforce a form of lockdown that is opposed by its locally-elected leaders, including Mayor Andy Burnham, because of what they believe is inadequate support for the region's workers and economy.

Mr Burnham has responsibility for the local police force itself - and a lot of people support his position.

The law is clear - if a region is placed inside tier three, the rules must be followed.

Ministers have also just given GMP £1,733,541 to cover the costs of visible patrols to ensure members of the public are complying with restrictions.

The question is whether GMP will find people flatly refusing to comply because they've taken their lead so far from the mayor, rather than a prime minister whom they regard as remote from the reality of their lives.

Tory MP William Wragg, who represents Hazel Grove, has tweeted that the "sense of failure" in Greater Manchester not agreeing a deal "is overwhelming".

Laura Kuenssberg
Political editor

A Greater Manchester source said: "We had costed what people needed. Rather than give us what people needed, they were only willing to give us what they would offer."

But government sources have suggested that Andy Burnham was intransigent. One source said: "Other local leaders in Greater Manchester were more reasonable and constructive but Burnham was too proud to make a deal."

In response, a Greater Manchester source said there had been "unanimity", adding: "They were trying to grind us into submission."

Greater Manchester leaders originally submitted a request for £90m which had been costed by a former Treasury official.

They then discussed £75m with government officials this morning, which would have covered the period until the end of the financial year,,before shifting to a request of £65m.

Lewis Goodall
BBC Newsnight Policy Editor

Labour leader Sir Keir Starmer has blamed the government for the collapse of talks with Greater Manchester over a Tier 3 deal.

Sir Keir tweeted that the city region, as well as the Midlands and North East, had been "treated with contempt".

The highest tier of Covid restrictions are expected to be imposed on Greater Manchester after talks over financial support broke down.

Image source, PA Media

BBC political editor Laura Kuenssberg said local leaders had asked for £65m but would now get less than £60m.

The "very high" alert level - or tier three - means pubs and bars not serving food must close, and there will be extra restrictions on household mixing.

Prime Minister Boris Johnson is set to hold a press conference at 17:00 BST.

Speaking earlier about the breakdown in negotiations, Communities Secretary Robert Jenrick said Greater Manchester's mayor, Andy Burnham, had been "unwilling to take the action that is required to get the spread of the virus under control."

BBC Business News

Hospitality chiefs are scrambling to work out whether working lunches at pubs and restaurants could be exempt from new coronavirus restrictions.

Image source, Ian Forsyth

Trade body UK Hospitality said it wants government clarification, as some venues rely on workers meeting up over lunch.

People from different households are banned from meeting in pubs and restaurants in tier two and tier three areas.

But the rules suggest meetings are allowed for business purposes.

Current government guidance advises working from home as much as possible and limiting social contact.

Lewis Goodall
BBC Newsnight Policy Editor

Talks between Greater Manchester and the government on the region entering tier three restrictions have concluded without an agreement, the communities secretary has said.

Robert Jenrick accused Greater Manchester Mayor Andy Burnham of being "unwilling" to take the action needed to control the virus.

Image source, PA Media

Local leaders had been arguing for £75m in financial support.

Boris Johnson will lead a press conference at Downing Street later.

And Health Secretary Matt Hancock will give a Commons statement at 19:00 BST.

Mr Jenrick previously said the prime minister could impose top tier measures if no deal was agreed.

The "very high" alert level - also known as tier 3 - would mean closing pubs and bars which do not serve meals, and additional restrictions on households mixing.

So far, only the Liverpool City Region and Lancashire have been given highest level of restrictions.

Communities Secretary Robert Jenrick says discussions with Greater Manchester's leaders have failed to produce a deal.

"I'm disappointed that, despite recognising the gravity of the situation, the mayor 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.

"I have therefore advised the prime minister that these discussions have concluded without an agreement."

Lewis Goodall
BBC Newsnight Policy Editor