By Ben Kerrigan-
The British Government has done well by offering an impressive pay offer of 66% of employees who are forced to shut down due to are to get two-thirds of their wages due to the coronavirus pandemic.
The scheme, announced by Rishi Sunak, begins on 1 November for six months and a Treasury source said it could cost hundreds of millions of pounds a month.
Pubs and restaurants in the worst affected areas are expected to be totally shut from Monday. The North Of England is expected to be heavily affected.
Leaders of affected areas were pleased with action from the government to recognise the need for support, but they felt more needs to be done to help the industry
In a statement, the mayors of Greater Manchester, North Tyne, Sheffield and Liverpool said: “We are pleased that the government has listened and recognised that any new system of restrictions must come with a substantial package of financial support.”
But they said it was only a “start” and more help was needed “to prevent genuine hardship, job losses and business failure this winter”.
The announcement comes just a fortnight after the government unveiled its Job Support Scheme – replacing the furlough scheme – to top up the wages of staff who have not been able to return to the workplace full time.One pub manager in Otley, West Yorkshire, said the scheme “doesn’t even touch the sides” in terms of its impact on pubs.
“Two-thirds of somebody’s wage isn’t going to cut it,” said Mel Green, 41, of The Black Bull.
“We’re in a trade where everyone’s on national minimum wage pretty much. They’re the ones that are losing out. A lot of them are living hand to mouth already and they’ve already had hours reduced.”
The chancellor said he hoped the financial measures taken to address the job losses in affected areas would provide “reassurance and a safety net for people and businesses in advance of what may be a difficult winter”.
The Treasury says the devolved administrations in Scotland, Wales and Northern Ireland will receive increased funding allowing them to bring in similar measures if they choose to.
It is a sign of how quickly the coronavirus situation has soured that the chancellor is having to return to a policy he thought he’d parked less than two weeks ago when he announced his Winter Economic Plan.
Image:news.sky.com