BRITISH business has welcomed the extension of the furloughing scheme until October as announced by Chancellor Rishi Sunak today.
Under its Coronavirus Job Retention Scheme the Government will continue to pay 80% of the furloughed employee’s wages for the next four months.
But the Chancellor says that employers will be asked to contribute to the wages from August.
Staff who have been furloughed will also be able to come back into work part-time at that point, said Mr Sunak.
There are currently around 7.5 million people on furlough in the UK, or a quarter of the country’s workforce.
Shadow Chancellor Anneliese Dodds has said it is critically important that employees on furlough do not get penalised for the choice of their employer to enrol them on the scheme.
The British Chamber of Commerce has welcomed the extension. Its director general Adam Marshall said: ’The extension of the Job Retention Scheme will come as a huge help and a huge relief for businesses across the UK.
’The Chancellor is once again listening to what we’ve been saying, and the changes planned will help businesses bring their people back to work through the introduction of a part-time furlough scheme. We will engage with the Treasury and HMRC on the detail to ensure that this gives companies the flexibility they need to reopen safely.
’Our research shows that the scheme has become a key part of wider government support for businesses, with more than 70 per cent of firms surveyed furloughing a portion of their staff.
’Over the coming months, the government should continue to listen to business and evolve the scheme in line with what’s happening on the ground. Further support may yet be needed for companies who are unable to operate for an extended period, or those who face reduced capacity or demand due to ongoing restrictions.’