The government’s decision to further extend the furlough scheme has been welcomed by business experts across the country. Business West, the largest business association in the South West, praised Chancellor Rishi Sunak’s announcement. Business West experts also urged the government to provide additional support over the next 12 months.
In this blog post, we look at the raft of supportive measures many in the west of England now believe the government needs to introduce to help businesses recover when the furlough scheme ends.
What is the updated furlough scheme?
The furlough scheme requires workers to fulfil certain criteria to qualify, such as being on a companies payroll by 30 October 2020.
Workers can be furloughed whether they are on zero-hour or flexible contracts, doing agency work, part-time or full-time employment. For this updated furlough scheme, the government is paying 80% of worker wages. The worker’s employer is responsible for pension and National Insurance payments.
The government’s extension of the furlough scheme cancelled the planned Job Support Scheme, due to commence on 1 November. As the UK’s second lockdown created too much uncertainty for business, the government has given way to pressure from businesses and opted to extend the existing furlough scheme.
Proactive support, better track and trace needed
While the new furlough scheme is a more attractive option for businesses, with the government covering 80% of wages, Business West believes that the government needs to do more to protect and support local businesses to make a full recovery throughout 2021.
Phil Smith, the managing director of Business West which also drives the Swindon & Wiltshire Initiative, said recently: “Government must set out longer-term measures over the next 12 months to give firms great certainty and confidence to plan proactively, rather than to react to changes in support from week to week.”
Business West expressed concern over businesses which have not qualified for any support from the government since the pandemic started. The potential increase in unemployment figures and the number of businesses forced to close because of lack of support would be detrimental to the country’s economic recovery.
Mr Smith added: “There can be no substitute for a fully functioning economy. Fundamentally, that means the government using the time afforded to them through another lockdown to significantly improve the test, track and isolate system, which remains key to keeping the economy open.”
Experts across the Swindon and Wiltshire area, as well as the whole of the South West, are keeping a close eye on developments and ensuring that local businesses are informed and supported. Business West is also requesting that the government make grants available to support local business over this challenging winter season and ahead into 2021. Stay tuned.
