Chancellor Rishi Sunak has extended the government’s furlough scheme until the end of April, as he aims to provide businesses and employees with some certainty entering the new year.
The government will continue to contribute 80% of employees’ wages for hours not worked, while employers will be required to pay wages, national insurance contributions and pensions for hours worked and not worked.
In addition, Sunak has extended the government-guaranteed Covid-19 business loan schemes, including the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme and the Coronavirus Large Business Interruption Loan Scheme, until the end of March. These had been due to close at the end of January.
The government reported that its furlough scheme had so far protected 9.6 million jobs across one million businesses in the UK, and provided over £68bn in loans to help keep businesses afloat.
“Our package of support for businesses and workers continues to be one of the most generous and effective in the world – helping our economy to recover and protecting livelihoods across the country,” Sunak said.
“We know the premium businesses place on certainty, so it is right that we enable businesses to plan ahead regardless of the path the virus takes, which is why we’re providing certainty and clarity by extending this support, as well as implementing our Plan for Jobs.”
Business secretary Alok Sharma added: “Extending government-backed loan schemes will give companies right across the UK the finance they need to support, protect and create jobs as we build back better from the pandemic.”
The move comes ahead of the next Budget, which will be announced on 3 March.
To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette
