Rushi Sunak To Set Out Financial Support Plans For Businesses On Monday

Rushi Sunak To Set Out Financial Support Plans For Businesses On Monday

By Ben Kerrigan-

UK chancellor, Rushi Sunak will set out on Friday more financial support for businesses forced to close by law when virus rules are tightened in England.

Mr Sunak will outline the next stage of the Job Support Scheme to help firms that “may have to close in the coming weeks or months”.

Plans for  pubs and restaurants in the worst-affected areas to be shut down is expected as early as next Monday. Regional leaders have called for more help for struggling firms.

And Labour leader Sir Keir Starmer has said local leaders should be “in the room” and included in local lockdown decisions.
The Job Support Scheme will replace the furlough scheme from 1 November, will see eligible workers get three quarters of their normal salaries for six months.

Only employees in a ”viable job” where they can work for at least one-third of their normal hours will be eligible for the scheme.

Nearly three million workers – or 12% of the UK’s workforce – are currently on partial or full furlough leave, according to official figures. The current furlough scheme ends on 31 October.

Under a new  tiered system to be announced on Monday, different parts of the country would be placed in different categories – although ministers are still discussing the precise details.

Pubs and restaurants could be closed in the worst-affected areas, while a ban on overnight stays is also being considered.

On Thursday, England’s chief medical officer Chris Whitty presented evidence to MPs in a video call that a “significant proportion” of exposure to coronavirus was happening in the hospitality sector – but nothing more was shown on the scope, severity, timing or precise location of any new restrictions.

Anger

Many local leaders are angry with the way  the government has communicated proposed changes to them. Greater Manchester Mayor Andy Burnham accused the government of treating the north of England with “contempt” after he learned ministers were considering shutting hospitality venues in the worst-affected areas in a newspaper report.

Mr Burnham  told BBC’s Question Time: “The message I’ve given to the government is a pretty clear one – there can be no restrictions without support.

“And if it’s going to be the tier three restrictions – effectively a national lockdown – we have to go back to a full furlough scheme for those staff, support for those businesses, otherwise the north of England is going to be levelled down this winter and I won’t accept it.”

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