Connect with us

Hi, what are you looking for?

Investing

Rishi Sunak rejects businesses pleas to extend furlough which will be phased out from July 1

Rishiv sunak

Demands from businesses to extend the furlough scheme were rejected by Rishi Sunak last night – despite the expected delay to ending lockdown.

The hugely expensive wage support fund is due to start being wound down at the end of this month.

As part of the Budget earlier this year, the Chancellor announced he would stop covering 80 per cent of the salaries of those not at work.

From July 1, the Government’s share will fall to 70 per cent with employers contributing 10 per cent, as part of a staged withdrawal of the scheme due to finish completely at the end of September.

Business groups including the British Chamber of Commerce yesterday urged the Chancellor to delay the wind down if lockdown is extended, while hospitality chiefs claimed as many as 200,000 jobs were at risk.

But sources close to Mr Sunak insisted the timetable for gradually withdrawing furlough would remain the same.

They said that by extending support to the end of September the Treasury had already ‘gone long’ in case there was any delay to reopening. Mr Sunak is also resisting calls to extend the business rates holiday that is also due to start being withdrawn at the end of the month.

Retail, hospitality and leisure premises have been helped with a 100 per cent relief since last March when the lockdowns first began. The Government is due to reduce the relief to 66 per cent from July 1 and it will remain in place until the end of March next year.

Trade body UKHospitality has called for Mr Sunak to keep the full relief in place for a further three months until the start of October.

Chief executive Kate Nicholls said yesterday: ‘We recognise that the Chancellor has provided long-term support for the sector which extends into the recovery period, but there is no doubt that any extension to the restrictions will be challenging for sectors yet to open and those still trading at a loss to navigate.’

She added: ‘Among other measures, the Government must postpone business rates payments until at least October and extend the rent moratorium while a long-term solution is found.

‘Businesses need a swift, publicly-stated commitment that such support will be in place in the event of any delays, giving them much-needed reassurance after more than 15 months of closure and severely disrupted trading.

‘Hospitality is desperate to get back to what it does best and can play a key role in the economic recovery of the UK – but only if it is given the proper support.’

Most recent figures showed there were 3.4million jobs on furlough at the end of April, which was 900,000 lower than the month before. Since the start of the scheme last March, a total of 11.5million jobs have been supported by furlough at some point at a cost of £64billion.

Read more:
Rishi Sunak rejects businesses pleas to extend furlough which will be phased out from July 1

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global plastic pollution treaty, weeks...

Economy

By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded its growth forecast for the Philippines for this year and 2023, citing an “accommodative”...

Economy

THE PHILIPPINE auto industry’s sales recovery will likely be derailed if a measure reimposing excise taxes on pickup trucks is signed into law, according...

Economy

THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected to...

Economy

THE ASIAN Development Bank (ADB) is planning to allocate at least $14 billion for a program aimed at easing a food crisis in the...

Investing

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.