Furlough extension is revealed
Businesses have been offered a further financial reprieve after existing furlough arrangements were extended until the end of March.
The measure, which had been in place until the start of December as a result of England moving into its own national lockdown, will be in place until next spring, with the UK Government guaranteeing 80 per cent of the wages of staff up to £2,500.
Under the scheme, employers will only be responsible for paying national insurance and pension contributions for any furloughed staff.
The change, which will be reviewed by ministers in January, will be echoed across the four UK nations, following criticism from the Scottish and Welsh governments over whether the extension announced last week would be available only for the four-week period of lockdown in England.
Announcing the plans on Thursday afternoon, Chancellor Rishi Sunak said the measure was intended to“give businesses security through the winter”.
Mr Sunak added:“our highest priority remains the same - to protect jobs and livelihoods.
“As we saw from the first lockdown, the economic effects are much longer-lasting to businesses and areas than the duration of any restrictions and the economic recovery has slowed.
“I want to reassure the people of Scotland, Wales and Northern Ireland that the furlough scheme was designed, delivered by the government of the United Kingdom on behalf of the people of it, wherever they live.”
The announcement follows concerns from a Stirling business leader earlier this week that businesses faced being“left in the lurch”over the political uncertainty around continued furlough payments.
Lynn Blaikie, president of the Forth Valley Chamber of Commerce, told the Observer:“the ongoing limbo over the timelines of the extended furlough scheme will create uncertainty for businesses in the local area, who will considering tough decisions on how best they can protect the jobs they facilitate.
“The UK Government must give assurances that the extended furlough schemes will available when needed by all the other nations of the UK, not simply when they are available in England.
“When the issue turns into a political minefield, businesses are left in the lurch at the lack of detail on how long they can expect and plan to access that lifeline employment support.”
First Minister Nicola Sturgeon broadly welcomed the announcement at Holyrood, but said she was yet to see the detail of the plans and that the“acid test”of the proposals would be if Scotland and Wales was able to access 80 per cent furlough when England is no longer in full lockdown.