The Courier & Advertiser (Angus and Dundee)
Restaurants and bars ordered to close as wage cover announced
Chancellor announces unprecedented move to enable employers to keep on staff who are not working during crisis
Boris Johnson has ordered pubs and restaurants across the country to close as the government announced unprecedented measures to cover the wages of workers who would otherwise lose their jobs due to the coronavirus outbreak.
The prime minister said that nightclubs, theatres, gyms and leisure centres should close their doors from last night to slow the spread of Covid-19 and prevent the NHS coming under unsustainable pressure.
At his daily Downing Street press conference, Mr Johnson said the measures were needed to reduce “unnecessary” social gatherings by 75% in order to have an impact on the infection rate.
“The speed of our eventual recovery depends entirely on our collective ability to get on top of the virus now
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To all those at home right now anxious about the days ahead, I say you will not face this alone. CHANCELLOR RISHI SUNAK
and that means we have to take the next steps on scientific advice,” he said.
“And following our plan we are strengthening the measures announced on Monday. We need now to push down further on that curve of transmission between us.”
He was followed by Chancellor Rishi Sunak who said he was establishing a coronavirus job protection scheme to help employers hit by the outbreak.
He said that they would be able to apply to HM Revenue and Customs to cover 80% of the wages of staff they keep on up to £2,500 a month.
Mr Sunak said “our planned economic response will be one of the most comprehensive in the world”.
He added: “To all those at home, right now anxious about the days ahead, I say you will not face this alone.”
The UK Government is going to cover 80% of the wages of workers up to a total of £2,500 a month under unprecedented intervention in a bid to save jobs.
The chancellor conceded that people had already lost their jobs because of the coronavirus crisis, but he unveiled a series of measures aimed at averting an employment catastrophe.
A Coronavirus Job Retention Scheme has been set up, available for any employer in the country, covering small or large, companies, charities or nonprofit organisations.
Rishi Sunak said: “Employers will be able to contact HMRC for a grant to cover most of the wages of people who are not working but are furloughed and kept on payroll, rather than being laid off.
“And, of course, employers can top up salaries further if they choose to.
“That means workers in any part of the UK can retain their job, even if their employer cannot afford to pay them, and be paid at least 80% of their salary.”
The scheme will cover the cost of wages backdated to March 1 and will be open initially for at least three months, with the chancellor pledging to extend for longer if necessary.
“I am placing no limit on the amount of funding available for the scheme. We will pay grants to support as many jobs as necessary.
“To meet our commitment to that effort, I am today announcing a combination of measures unprecedented for a government of this nation.”
The chancellor said HMRC was working night and day to get the scheme up and running and he expected the first grants to be paid within weeks, adding: “We’re aiming to get it done before the end of April.”
The government is launching a major national advertising campaign to communicate the available support for businesses and people.
In an appeal to businesses, the chancellor said: “Please look very carefully at that support before making decisions to lay people off.
“We are starting a great national effort to protect jobs, but the truth is we are already seeing job losses and there may be more to come.
“I cannot promise you that no one will face hardship in the weeks ahead.”
Unions welcomed the measures, described by Unite leader Len Mccluskey as “historic, bold and very much necessary”.
Other union leaders warned that workers had already lost their jobs and others will suffer hardship, even on 80% of their wages.
Paddy Lillis, general secretary of the shopworkers’ union Usdaw, said: “There are many workers, particularly in retail, who are contracted for fairly few hours each week, but regularly work many more to make a weekly wage they can live on.
“These short-hours contract workers rely on this regular additional money, so for their income to be drastically reduced to 80% of contract pay will put them in real hardship.”
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Please look very carefully at that support before making decisions to lay people off CHANCELLOR RISHI SUNAK