New furlough is not enough
THE Chancellor launched his new furlough scheme to keep businesses afloat amid local lockdowns yesterday – and was warned it was not enough to avert a jobs bloodbath.
Rishi Sunak said the Government will pay 67% of wages, up to a maximum £2,100 a month, for staff in pubs, restaurants and other businesses that are forced to close under new measures.
The move came after huge pressure to follow up the original Covid-19 furlough scheme, which ends on Halloween.
Mr Sunak said it “will provide a safety net for businesses across the UK required to temporarily close their doors”.
The scheme begins on November 1 and will run for six months, getting a review in January. But critics pointed out it will not cover firms taking a clobbering from the pandemic that are not ordered to shut amid fresh clampdowns.
TUC chief Frances O’Grady said: “Ministers still need to do more to stop the devastation of mass unemployment. Firms which aren’t required to close but will still be hit by stricter local restrictions need a more generous short-time working scheme – and there needs to be extra help for self-employed people.”
Prospect union general secretary Mike Clancy added: “There appear to be gaping holes, for businesses impacted but not required to close and self-employed who lose work due to restrictions and have yet again been ignored.”
And in a joint statement, Greater Manchester metro mayor Andy Burnham, Liverpool City Region metro mayor Steve Rotheram, North Tyne mayor Jamie Driscoll and Sheffield City Region metro mayor Dan Jarvis said it was “a start but it would not appear to have gone far enough to prevent genuine hardship, job losses and business failure this winter”.
But CBI director- general Dame Carolyn Fairbairn welcomed the move, saying it “should cushion the blow for the most affected and keep more in work”.
And Institute of Directors policy director Roger Barker said: “This should provide a lifeline for many companies and people.” Ministers are expected to outline a three- tier local lockdown ‘WICKED’ system on Monday. Restrictions will hit 10 million in the North and hospitality venues in Covid hotspots face closure. The original furlough has cost tens of billions and initially paid 80% of pay up to a maximum £2,500 a month. A Treasury source said of the new scheme: “We’re looking at hundreds of millions a month.” Employers must cover NI and pension contributions. Staff
must be off a minimum of seven consecutive days.
Mr Sunak’s announcement came 15 days after he unveiled his Winter Economy Plan.
Shadow Chancellor Anneliese Dodds said: “The fact [he] is having to tear up his plan before the autumn is out demonstrates the chaos and incompetence at the heart of Govern
ment. His delay in delivering support has caused unnecessary anxiety and job losses.”
It came as the UK recorded 13,864 new cases and 87 more deaths. There were 17,200 new cases per day in the seven days to October 1, up from 8,400 the previous week. And SAGE experts put the R number at 1.2 to 1.5 – down from 1.3
to 1.6 the previous week. Nottingham’s weekly rate of 760.6 new cases per 100,000 is the highest in the UK.
And Prime Minister Boris Johnson faces a growing backlash in the North.
Sir Richard Leese, leader of Manchester Council, said evidence suggests the virus is most likely to spread in household settings. He added: “Further measures risk posing an existential threat for enormous numbers of businesses.” Critics also say plans are being drawn up without local input.
And former Labour Home Secretary Lord David Blunkett said the “unilateral decision to lock down the North” was “a betrayal”, adding: “It is a wicked abuse of power. I don’t understand why Boris Johnson thinks he will get away with treating a swathe of Britain as a laboratory for testing measures that have limited scientific validity.
“Does he not remember what happened to Margaret Thatcher when she tried an equally arrogant experiment? It was called the Poll Tax and it helped bring down her government... with a majority even bigger than the one Mr Johnson commands.”
Labour leader Keir Starmer added: “The party elected on a promise to level up is talking down to huge swathes of the country. This is fuelling public frustration and resentment.”
Meanwhile, experts warn a lack of hand washing, social distancing and mask wearing could be fuelling outbreaks in the North. The React-1 study suggested Londoners may be protected as they suffered a worse first wave and precautions are being more closely adhered to there.