The midday deadline for a deal on tougher coronavirus restrictions in Greater Manchester has passed without news of a breakthrough.
Local leaders are pushing for the government to up their offer of £22 million to £75 million to help struggling workers and firms, and pay the council more for contact tracing and rules enforcement.
Neither side has yet said if an agreement has been struck.
Live updates on Greater Manchester stalemate as deadline passes without a deal
Talks were due to end at noon
They had been racing to secure a compromise by 12pm on Tuesday – the deadline set last night by Communities Secretary Robert Jenrick.
Prime Minister Boris Johnson made clear last week he is willing to impose the move to Tier 3 if stalemate remains “in order to protect Manchester’s hospitals and save the lives of Manchester residents”.
Tier 3 would mean greater restrictions on hospitality businesses
That 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.
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”.
Please use Chrome browser for a more accessible video player
‘Why do the government hate Manchester?’
Earlier, mayor of Greater Manchester Andy Burnham criticised a “late-night ultimatum” by Mr Jenrick that he called “a bit provocative”.
Responding to the £22m offered by the government, Mr Burnham accused ministers of “trying to penny pinch”.
But he said he would “accept” Tier 3 being imposed if Mr Johnson chooses to, because it is his “prerogative”.
Business minister Nadhim Zahawi said 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.