Furlough scheme extended until end of March

Chancellor Rishi Sunak has extended the Government’s furlough scheme until the end of March 2021.

In a statement in the House of Commons, Sunak said: Our highest priority remains the same; to protect jobs and livelihoods. Given the significant economic uncertainty, we can announce today that the furlough scheme will be extended until the end of March.”

The Government will continue to pay 80% of the wages of furloughed staff and review the measures in January.

Sunak also said because of the new measures, the Government’s Job Retention Scheme has been postponed.

There was also good news for the self-employed, with the Chancellor announcing that the Government will pay 80% of average profits for the period November to January.

Responding to the Chancellor’s decision, Andrew Denniff, chief executive, Barnsley & Rotherham Chamber, said: “An extension of the furlough scheme and more generous grants for the self-employed are clearly important in protecting jobs and providing certainty for our businesses beyond the immediate impact of four-week lockdown.

“These changes give businesses significant reassurance over an uncertain winter, but many will understandably still wish for the Government to give a clearer view of the road ahead.

“Government must set out longer-term measures over the next 12 months to give us greater certainty and confidence to plan proactively, rather than to react to changes in support from week to week.

“As well as support on jobs, reduced demand will impact firms’ cashflow across the country, not just those placed under the toughest restrictions.

“More generous grants will be required if those businesses are to weather a difficult winter ahead.

“However, there are still many businesses and individuals who have been unable to access any Government support since the start of the pandemic and will require support if we are to avoid significant increases in unemployment and business failures.”

Henri Murison, director of the Northern Powerhouse Partnership, added: “This will be very welcome news for many as we go into a second national lockdown and should go a long way to protecting many thousands of viable jobs in the North, avoiding the impending cliff edge in a few weeks time.

“However, just as critical will be a Northern Economic Recovery Plan to create more jobs and promote economic growth in the long-term, led by businesses and Metro Mayors here in the North.”