Chancellor unveils post-furlough plan to save jobs and businesses
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THE UK chancellor has unveiled a winter support plan to protect millions of jobs and businesses as Covid-19 prevention measures are tightened.
Chancellor Rishi Sunak outlined the plans today in the House of Commons, which he described as "radical interventions".
The measures include a new six-month Job Support Scheme to replace the furlough scheme, which will come to an end in October.
The Job Support Scheme is designed to help people working at least one-third of their normal hours. Employers will pay staff for the hours they work, and the government and the employer will pay a third each for the hours they can't work.
The new scheme will start on November 1.
Mr Sunak said: "Many businesses are operating safely and viably, but they now face uncertainty and reduced demand over the winter months.
"What those businesses need is support to bring people back to work and protect as many viable jobs as we can."
Other measures announced include Pay As You Grow for recipients of Bounce Back Loans which extends the repayment period from six to 10 years. Businesses who are struggling will be able to make interest-only payments or apply to suspend payments for up to six months.
The VAT cut for hospitality and tourism has been extended. VAT will remain at 5 per cent for the sector until March 31 next year instead of reverting back to 20 per cent in January.
The government guarantee on Coronavirus Business Interruption Loans will be extended for up to 10 years.
Sarah Medcraf, chief executive of Moray Chamber of Commerce, said: "Thousands of jobs in Moray are still reliant on the current furlough scheme so we are pleased the chancellor has listened to our calls and introduced a new wage support scheme, along with a package of business lending scheme extensions and tax forbearance.
"This should help save many from losing their jobs completely and lessen the immediate pressure on cash flow for businesses, particularly during what will continue to be difficult trading conditions this coming winter.
"However, topping up wages can only ever be a sticking plaster.
"In Scotland we need a comprehensive plan focused on retraining and upskilling our workforce and investment in the creation of new jobs.
"The extension to the reduced VAT will be welcomed by the hospitality industry and new flexibility on the debt that business took out to simply survive are welcome."
Scottish Conservative MP for Moray Douglas Ross said he had called for more support from the UK Government to reflect the increase in Covid-19 restrictions.
Mr Ross said: "The new Job Support Scheme will protect jobs and the wages of workers throughout the winter months.
"It is a radical step for a UK Government to top up the wages of staff in this way and should help avoid the kind of mass redundancies that had been feared.
"I was particularly pleased to see the VAT cut for the hospitality and tourism sector extended until the end of March next year.
"This is important for many businesses and for jobs in Moray. Tourism is a vital part of our local economy – and indeed the wider Scottish economy.
"Once again, the UK Government has taken the necessary steps to protect all four nations of the UK from the huge and ongoing challenges presented by the coronavirus pandemic."
