The rich need to stump up
Tycoons are slammed for getting state cash while NHS battles crisis
MEGA-RICH tycoons have been slated for applying for the taxpayer bailout to pay staff while not chipping in themselves.
Topshop boss Sir Philip Green is among a wave of moneybags chiefs taking advantage of the Government scheme designed to save jobs during the crisis.
Luke Hildyard, director of nonparty think tank the High Pay Centre, said: “Taking public money to pay staff at a time when it is desperately needed to support the NHS and other vital public services while sitting on a fortune worth millions or even billions is the epitome of greed.
“People all over the country are taking a hit to their incomes and living standards as a result of the coronavirus.
“But those riding out the disruption on private islands and yachts have not been affected in any meaningful way.”
George Turner, of campaign group TaxWatch, said tycoons using state money to pay staff is something “we need to swallow because there are going to be injustices”.
He said the alternative could be mass job losses, adding: “There will be virus villains and virus heroes when we look back.”
A flood of firms and other organisations say they plan to use the coronavirus job retention scheme, which allows employers to reclaim 80 per cent of staff salaries – up to £2500 a month.
For many businesses, this ability to furlough workers may mean they manage to survive the turmoil.
But among those claiming the bailouts are a host of commercial giants accustomed to raking in massive profits.
McDonald’s is furloughing 135,000 workers, fashion chain Primark 30,000, Greggs 25,000, Costa Coffee 16,000 and Nissan 6000.
Virgin Atlantic is calling on the Government to pay the wages of 8000 workers despite being part-owned by Sir Richard Branson, who is worth an estimated £3.8billion.
There is pressure on companies to, where possible, ensure staff remain on full pay by topping up some or all of the remaining 20 per cent themselves. Some firms – including Premier Inn owner Whitbread and the firm behind shoe mender Timpson – are among firms to commit to doing so voluntarily.
British Airways has agreed to cover the extra cost if 80 per cent of workers’ pay takes them above the £2500 cap.
Coffee chain Starbucks is paying staff in full for the first month after its shops
shut and will make a decision after that. Most being furloughed at other firms will effectively have to take a 20 per cent pay cut to keep their job.
They include store staff at Green’s Arcadia empire – whose chains include Topman, Dorothy Perkins and Miss Selfridge – where 14,500 workers are being furloughed.
Taxpayers will cover most of these salaries despite Green, nicknamed Sir Philip Greed, and wife Lady Green having an estimated wealth of almost £1billion.
Arcadia said: “Safeguarding jobs through this period is critical and we are grateful for the Government support offered by the job retention scheme which will enable us to furlough a substantial number of our colleagues who are unable to work.”
Green, who has spent decades sunning himself on luxury holidays and being photographed with glamorous celebs, declined to comment.
Virgin Atlantic said: “Some of our teams are away on furlough receiving the 80 per cent payment via the coronavirus job retention scheme.
“However, we have been approached by many organisations asking whether our people would work for them during this very busy time.”
Primark owner Associated British Foods said staff hired after the end of February, the cut-off for the job retention scheme, would also be furloughed on the same terms.
Shoe repair firm Timpson’s is adding the extra 20 per cent for workers’ pay.
CEO James Timpson said: “It’s because we can afford to do it and because the priority of our business is to look after everyone.
“We are making a sacrifice because our colleagues still have bills to pay, because they are very often the main breadwinner in the family.”
Julian Richer, owner of hi-fi chain Richer Sounds, is topping up the 80 per cent from taxpayers to ensure its furloughed workers continue to get the “real” living wage of £9.30 an hour, or £10.75 in London.
Richer, who last year announced he was handing control of the firm to staff, argued that furloughing should come with strings attached.
He said: “An awful lot of aggressive tax avoiders could benefit. It is time for them to clean up their act. “Maybe the Government should hold a gun to their head.”
Premier League clubs are set to ask players to take a 30 per cent pay cut to protect jobs. It comes after backroom staff were left facing a wage cut after being furloughed to save money.
Boris Johnson has backed Health Secretary Matt Hancock’s call for footballers on millions to “play their part”.
Tottenham, owned by billionaire tax exile Joe Lewis, are among those cutting wages of non-playing staff by 20 per cent.
The Premier League has also said it will give £20million to the NHS and vulnerable groups.