West welcomes plan but warns
THERE was a broad welcome for Chancellor Rishi Sunak’s measures yesterday, although some business leaders did have reservations.
Dame Carolyn Fairbairn, director general of the CBI, said it was right to target help on jobs with a future.
“These bold steps from the Treasury will save hundreds of thousands of viable jobs this winter.
“Wage support, tax deferrals and help for the self-employed will reduce the scarring effect of unnecessary job losses as the UK tackles the virus,” she said.
Ruth Lambert, development manager at Somerset and Wiltshire Federation of Small Businesses, said: “The Chancellor’s announcement today proposes some new measures which will make a real difference to small businesses.
“It is encouraging to learn that all small businesses will be able to access the new job support scheme without facing excessive paperwork and that this support is guaranteed to last for the next six months.
“News of the ‘Pay as you Grow’ approach to repaying the government-backed loan schemes will mean relief for hundreds of thousands of firms and will give them the confidence to spend this money on hiring new staff and investing in their business for the future.
“On the tax side, many business owners have had their cash flow substantially impacted and so to be able to spread both VAT and income tax repayments next year will really help them to become more manageable.
“We look forward to hearing more detail on the successor to the selfemployed income support scheme and hope that this will be extended to include those who were not eligible last time.
“The newly self-employed and company directors have been excluded from the first round of measures and we hope to see new schemes emerging to help them as they are suffering through this crisis too.
“With these new measures now in place we would encourage small businesses to explore how they could help younger workers, who we know are being disproportionately hit by this crisis, and to take advantage of new schemes such as Kickstart to provide new roles for this generation.”
But Business West was less fulsome in its praise for the measures.
Its policy and projects manager Claire Ralph said: “Business West welcomes the Government’s latest intervention to stave off mass unemployment within the South West region, but expresses some concerns about the limits to extended support.
“The most significant announcement and a much-needed follow-on from the furlough Job Retention Scheme, the Job Support Scheme, is considerably less generous than its predecessor.
“Employers pay at least 55 per cent of employees’ salaries from November 1 and operates across all sectors, rather than more support for badly affected sectors.
“This is a concern given aerospace, the night-time economy and cultural and heritage industries contribute so much economic output and provide hundreds of thousands of jobs to our region.
“All small and medium entities and affected large businesses can claim the Job Support Scheme, and can claim for all workers whether or not they were furloughed, as long as they work 33 per cent of their hours for full pay.
“The Chancellor isn’t attempting to target support to where it is most likely to be needed. Employers can claim the Job Support Scheme alongside the Job Retention Bonus in many cases for the same workers.
“Extensions to the Self Employment scheme and the governmentbacked loan schemes are welcome to assist cash flow for struggling businesses, and longer repayment terms for loans and tax deferrals could be critical to prevent insolvencies in vulnerable businesses.
“Overall the scale of today’s announcement was very much smaller than those made in July and March, but is overdue and we hope it will help some employers and businesses make
2021.”
British Chambers of Commerce director general Adam Marshall said: “The measures will give business and the economy an important shot in the arm.
“Chambers of commerce have consistently called for a new generation of support to help protect livelihoods and ease the cash pressures faced by firms as they head into a challenging and uncertain winter.
“The Chancellor has responded to our concerns with substantial steps that will help companies preserve jobs and navigate through the coming months. The new Jobs Support Scheme will help many companies hold on to valued, skilled employees.”
TUC Regional Secretary for the South West Nigel Costley said: “We are pleased to hear that the Chancellor has realised an abrupt end to the job-saving retention scheme was not
it through to spring
It is encouraging to learn that all small businesses will be able to access the new job support scheme without facing excessive paperwork and that this support is guaranteed to last for the next six months RUTH LAMBERT, SOMERSET AND WILTSHIRE
FEDERATION OF SMALL BUSINESSES
the right path.
“Unions have been pushing hard for a continued jobs protection scheme for working people, so we are pleased the Chancellor has listened and done the right thing.
“This scheme will provide a lifeline for many firms with a viable future beyond the pandemic. No doubt, we’ll be looking closely at the details to make sure there are strings attached and the workers in the sectors hardest-hit are protected.
“But there’s still unfinished business. Unworked hours under the scheme must not be wasted. Ministers must work with business and unions to offer high-quality retraining, so workers are prepared for the future economy. The Government should target help at industries facing a tough winter, and provide more support for families most at risk of hardship and debt.”
On the further action now needed, Mr Costley said: “We must use this period of protection to make the economy more resilient and to plan a strong recovery.
“Ministers must act quickly to get the Test and Trace system working properly. It needs to be fast and reli