Vale of Leven where shops and businesses are under threat. Picture by Turkey Red Photography
What did Rishi Sunak say in his furlough announcement today?
By Democrat reporter
Chancellor Rishi Sunak announced an expansion to the Job Support Scheme today and said that it was his priority to “protect jobs”.
Some 67 per cent of worker’s wages will now be paid by the Government – it’s unclear whether employers will top them up.
Instead of employees having to work a third of their normal hours to qualify, those working from home will continue to qualify for at least six months.
It’s a sign that in the coming days the Government will force businesses to close.
Ministers are expected to outline a three-tier local lockdown system on Monday, which could see hospitality venues in coronavirus hotspots being temporarily shut.
Extra grants are also being made available for firms in lockdown areas – but again only if they are made to shut.
Businesses will be able to get up to £3,000 a month in help, which is paid in arrears every two weeks.
But for smaller businesses, they will be able to claim £1,300 a month – less than the £1,500 they can get at the moment.
And the scheme will open to places that are already still forced to close – like nightclubs which haven’t been allowed to reopen.
It will be a part of the new Jobs Support Scheme where employers can get 22 per cent Government help to pay wages if employees are only working part-time at the moment due to reduced demand.
The Chancellor made the announcement at 3pm today. His statement comes as a government minister warned coronavirus is “out of control” in northern England.
Gillian Keegan, minister for skills and apprenticeships, said the country was now facing an “unbelievably serious situation” and desperately needed the new restrictions the government are bringing in.
The Job Support Scheme was lined up to replace the furlough scheme when it comes to an end on October 31.
Mr Sunak said the new scheme is “more generous” than the furlough scheme, which from October 1 has seen the state cover up to 60% of employees wages, capped at £1,875 a month.
Meanwhile, responding to reports that Edinburgh Woollen Mill Group, who were until recently one of the companies based at Antartex in Alexandria, is at risk of collapsing after it filed a notice to appoint administrators.
Liberal Democrat Treasury spokesperson Christine Jardine said earlier in the day: “The fact that thousands of jobs are at risk as Edinburgh Woollen Mill Group faces collapse clearly underlines the extent of the challenge to businesses across the UK and to all of those struggling to get by.
“Rishi Sunak cannot simply dismiss those struggling as not viable, and pretend that somehow the economy is on anything like a path to reopening.
“The Chancellor must announce today a guarantee of more support for those who desperately need it, including extending furlough until next June and broadening it to support everyone. If the Government doesn’t roll out more support these job losses will just be the beginning of what’s yet to come.”