Applause from bosses for Sunak’s aid pledge

THE Chancellor says support for bosses to help retain workers during the pandemic will continue as he announced an extended and more flexible furlough scheme that was welcomed by business leaders in the South West.

Rishi Sunak said from August employers would have to pay National Insurance (NI) and pension contributions, and then 10% of pay from September, rising to 20% in October.

Staff will be allowed to return to work part-time from July – a month earlier than was expected – with companies having to pay

100% of wages for those reduced hours.

The business community in the South West greeted the announcement with relief, saying that the part-time working flexibility could prove crucial for tourism and hospitality if both are able to come out of lockdown partially as hoped in July.

Tim Jones, chair of the South West Business Council, said: “There is a sense of relief that the furlough scheme is continuing. It has been the lifeblood that has kept companies going. Everyone recognises that the Government has to protect the national finances and businesses will be very pleased that the tapering of support is not as sudden as some feared.

“The part-time flexibility will be a help for tourism and hospitality when they get going.”

He also welcomed Mr Sunak’s pledge of a second tranche of help for the self-employed.

Kim Conchie, chief executive of Cornwall Chamber of Commerce, said the announcement of NI and pension payments to be contributed from August was “not an unfair ask”. “Forty per cent of businesses are so small they do not have to pay those.

“But my fear is for those who do have to pay but are not able to open up – having to pay 5% with no income could well be impossible for them.

“As we see retail opening up and professional services returning, if there is some income coming in the part-time scheme will be good. Having the flexibility will allow them to build business up.

“Having furlough until October will allow a business to work out what they are going to do, assuming, God help us, there is not a second wave [of infection].”