Confirmation that the final stage of easing lockdown restrictions in England will be delayed until 19 July has led to calls from some sectors for furlough to be extended beyond September.
The delay means most remaining curbs on social contact will continue beyond 21 June, when they had been due to be lifted.
Prime minister Boris Johnson told a Downing Street press conference yesterday that he could not rule out the possibility the date could be pushed back further, after scientists advising the government warned of a “significant resurgence” in people needing hospital treatment for Covid-19 if stage four of easing the lockdown went ahead next week.
It comes amid rising cases, driven by the more transmissible Delta variant of the pandemic.
Kate Nicholls, chief executive of trade group UKHospitality, is among those now calling for greater support from the chancellor.
She said: “This four-week delay to lifting restrictions will cost the [hospitality] sector around £3bn in sales, put at risk 300,000 jobs and have a knock-on impact on bookings throughout the summer and into the autumn.
“Simply put, if the supports provided by the chancellor are not sustained and adjusted, businesses will fail and getting this far will count for nought.”
TUC general secretary Frances O’Grady is also calling for an extension to the furlough scheme and urgent support for the hospitality and arts sectors.
He said: “The government must step up and provide urgent targeted support for these industries. We cannot afford for more companies to go to the wall, taking good jobs with them.
“The Chancellor also needs to announce now that he will extend furlough for as long as is needed, rather than cutting it off abruptly in three months’ time.
“Working people need this certainty now – not a rollercoaster approach to protecting livelihoods.”
But Rishi Sunak has so far rejected a calls from business leaders to extend furlough, despite the delay in ending lockdown.
The scheme, which pays 80% of people’s wages, is due to start being wound down at the end of this month.
From 1 July. the government’s share will fall to 70% with employers contributing 10% as part of a “tapered” withdrawal of the scheme.
A Treasury source said that the furlough scheme was already “one of the most generous in the world”.
Sunak is also resisting calls to extend the business rates holiday for retail, hospitality and leisure. The relief is due to fall from 100% to 66% on 1 July, although it will remain in place until March of next year.
Comments (4)
If ANY business has to factor in Govt shutting their business for 18 months not many will bother to risk their capital.
Govt is rightly preventing business from opening.
But it must protect those businesses from failing.
All Govt assistance should be regarded as bombs and bullets to fight the virus.
No Govt has willingly ever tried to deliberately restrict ammunition for the troops.
It is not the fault of business they are struggling.
Like it or not all those prevented from earning a living should receive Govt assistance.
The bill for this Govt assistance can be paid off over 100 years like the First and Second World War debt was!
Pandemics are the new World Wars.
Govts need to be ready to resource business if another pandemic or world war which is what it is hits again.
Govt coffers need to have a pandemic fund.
That wilm unfortunately mean reduced Govt spending.
It must save up for the next pandemic.
Is there anyone who believes there WON’T be another one!?
There are some business, particularly in the entertainment industry that are casualties of the pandemic and no control and deserve to be supported.
However, the fake and fraud claims are outstanding. The good intentions by government funding has often been squandered “on other things” like hot tubs! Furlough has also created employment issues with some people taking the money and now refusing to go to work when they could. Worse is the ones that have taken the money and then continue to work for another employer!!! I know many a business owner (not just property industry) who have job vacancies and can’t fill because of the latter.
Why is the tax payer paying furlough being paid if the economy opens up in July. This will all need to paid back one way or another.
Any business which is not strong enough needs to go sooner rather than later and let the vacuum be filled with a business that can survive and is strong enough.
Anyone needing help after furlough need to claim state help such as universal credit etc.
Any business owner who keeps on moaning needs to learn how to diversify opposed to moan.
Happy Tuesday to all.
If on July 19th all restrictions come to an end there is no need to extend furlough beyond October.
If July 19th isn’t the end, I am going to emigrate to Cambodia.