THE region’s business leaders have broadly welcomed new employment measures introduced by Chancellor Rishi Sunak as “a signpost to getting the economy back on its feet”.
Mr Sunak spelled out how the Job Retention Scheme will evolve over the next four months with furloughed workers allowed to return part time from July, and employers having to step up contributions from August.
Louise Bennett, chief executive of the Coventry and Warwickshire Chamber, said the changes would allow businesses to plan staff returns in a strategic way and to stagger the rise in associated costs.
“The Chamber – both regionally and nationally – has been pressing for more flexibility in the Job Retention Scheme, and clearly these measures are designed to do just that.
“The fact that some workers can return part time while still furloughed will allow of businesses to ease up their operations as, hopefully, the threat of Covid continues to subside.
“Business has really welcomed the support of Government during these unprecedented times and the furloughing scheme has been a major pillar of keeping companies solvent and people in jobs.
“But whatever the government does, there are going to be some significant bumps in the road to even partial recovery and that will, I fear, come with significant job reductions in several sectors.
“We will continue to lobby for the tapering of the scheme for the tourism and hospitality sector to continue for a longer people as it has been particularly hard hit.”
Sunak also announced further support from August for the self-employed, extending the current scheme.
British Chamber of Commerce Director General Adam Marshall said: “The Chancellor has listened to business communities and struck a careful balance that will help many firms bring furloughed staff back to work flexibly over the coming months.
“The gradual reduction in furlough contributions from the Treasury will give businesses additional time to rebuild their income streams and cash flows, and the decision to give businesses maximum flexibility to bring people back part-time will be appreciated.”
“The furlough scheme has helped companies preserve millions of jobs through lockdown, but many firms still face significant uncertainty ahead. On that basis, closing the scheme to new applicants in June feels premature, and risks undermining some of the work already done to preserve businesses and jobs.
“Over the coming months, government will need to be open to providing new and additional support for businesses and staff who are unable to get back to work for an extended period, especially in sectors of the economy facing reduced capacity or demand due to ongoing restrictions.”
“The extension of support for the self-employed will come as welcome relief for those who have seen their livelihoods impacted by the virus. It is right that this group continues to receive similar levels of support to those on PAYE
For more information on the support available to businesses contact the Chamber on 024 7665 4321.
