Kentish Gazette Canterbury & District
Government will continue to back businesses says Chancellor on visit to county
Fresh from telling MPS about an extension to the jobs furlough scheme, Chancellor Rishi Sunak came to Kent to see how one business here has adapted to the crisis. In an exclusive interview, he spoke to chief reporter Matt Leclere
Chancellor Rishi Sunak paid a flying visit to the county and vowed to fight to protect the tourism jobs Kent relies on. In an exclusive interview with the KM Media Group, he said he was fully aware of the industry’s importance to the local economy, with tourism estimated to be worth £4bn a year. He pledged the government will direct extra support to parts of the economy most affected by the lockdown.
One in nine people in Kent and Medway are employed in tourism.
The top Tory was speaking while visiting the Copper Rivet distillery in Chatham Dockside. He said: “I think because certain sectors have been most hard hit by the social distancing measures and measures we’ve put in place, we’ve directed extra support to those. “Tourism, hospitality and leisure have been particularly hard hit. We are providing a tax cut for the entire year of up to £11 billion for that sector and provided cash grants to businesses. “Many of those in Kent will be receiving those grants and will be a vital lifeline for rent bills and other costs.
“In line with the other things we’re doing, it demonstrates we understand the degree of difficulty those businesses are facing.”
The gin distillery has adapted during the lockdown and made hand sanitiser which has been used by the Metropolitan Police. Mr Sunak’s visit came hours after he announced in parliament the furlough scheme will be extended until the end of October.
The assistance, which was introduced on March 20, pays 80% of workers’ salaries up to £2,500 and was initially in place until the end of July.
Mr Sunak told MPS there will be greater flexibility from August to allow furloughed staff to begin returning to work and firms will be asked to contribute towards the payments to make sure the 80% is met. More details on the scheme are expected to be released later.
On Monday, one of Kent’s largest employers, P&O, announced 1,100 jobs could be scrapped as it battles to save costs. Asked how the government is ensuring jobs at risk of redundancy will not be lost, Mr Sunak said: “The main way furlough helps is that we pay employees’ wages – that removes a huge cost.
“If employees aren’t able to work and businesses aren’t able to sell things then that’s a problem.
“It means employees can stay close to their companies and we’ll cover the wages and that’s how we’ll protect those jobs and stop those firms going
out of business.
“So far I think that has worked. In the round there’s enormous amounts of support.”
Mr Sunak also said business grants of £10,000 and £25,000, cutting and deferring taxes and loan schemes had helped. He said the “finer complexities” of how employers will work in partnership with the government will be worked on in the coming weeks before the scheme launches in August.