TOTAL NUMBER DEAD FROM CORONAVIRUS IN THE UK:
33,186
BUSINESSES are concerned about their ability to contribute to furloughed salaries when changes to the scheme take place in July.
Workers can still be paid 80% of their wages but employers will be expected to pay 20%, with the UK Government paying 60%, under the coronavirus job retention scheme, which has been extended by the Chancellor until October.
The announcement by Rishi Sunak was broadly welcomed but some fear there will be largescale job losses, and Mr Sunak also warned he cannot save every job.
Alison Thewliss, Glasgow Central SNP MP, is the party’s shadow chancellor.
She said: “I’ve spoken to businesses across my constituency, and to member organisations representing business across Scotland, and it’s clear that there is little headroom for these types of contributions to be made.
“Indeed, if businesses have had no income, are setting aside funds to pay VAT at a later date, have taken out loans and still have rent and stock to pay for, where are they supposed to find the extra money to prop up the UK Government’s furlough scheme?
“Businesses may decide that they simply cannot afford to pay their staff and will start making redundancies. This will have a catastrophic impact.”
Thewliss said the Chancellor has to commit to a fully funded scheme for as long as each of the four nations of the UK require it.
She added: “The Chancellor said he will do whatever it takes to see the UK through this crisis. This commitment will ring very hollow should he not act on the concerns raised.”
Pubs and restaurants are all closed and could be last in line to re-open as social distancing becomes a key feature in life after lockdown, and are looking for prolonged help.
Nik Antona, national chairman of the Campaign for Real Ale, said: “It’s clear that some types of pubs won’t be able to open and operate successfully with social distancing measures.
“Pubs will require ongoing financial support both during lockdown and after restrictions lift.”
But the requirement that employers have to pay 20% of wages on furlough could lead to job losses in the sector, according to a tax expert.
Genevieve Morris, a partner at tax and advisory firm Blick Rothenberg, said the hospitality sector could see thousands of jobs lost in July.
She said: “In the hospitality sector, employees on a zero-hour contract will have been able to benefit from the furlough scheme and receive 80% of their average earnings, with no cost to the employer.
“If the cost of retaining them on furlough in the future hits the business’s bank account, employers will simply bring the employees back from furlough.
“But because they are on a zero-hour contract, the employer has no obligation to provide them with any hours, and so does not need to pay them at all which means that thousands could lose their jobs.”