Call for furlough changes to be delayed until Freedom Day

Corin Crane, CEO of the Black Country Chamber of Commerce said the "heroic national investment will be wasted" if the Government plans to shift some of the burden of paying for furloughed workers to businesses continues.

From Thursday, employers will have to pick up 10 per cent of their furloughed workers’ salaries, rising to 20 per cent in August and September.

The latest figures from HM Revenue and Customs show that 66,200 jobs held by workers living across the Black Country and Staffordshire were furloughed in May.

That was 30,200 fewer than the 96,400 furloughed at the end of April.

Corin Crane said: "The taper of government payments into the furlough scheme should be deferred until we take the final step in the road map, and further grant support should be extended to the worst affected businesses.

“A month’s delay may seem like a short time, but for businesses in retail, hospitality and leisure, legally closed from trading or relying on the summer season, the delay is another blow.

“The country has invested billions in keeping people in work ready for recovery, but if the ‘rug is pulled’ from under businesses too soon jobs will go and our heroic national investment will be wasted.

“Nobody is arguing for eternal furlough, but the Government has to work with employers to chart a new course through the pandemic. One that in the longer-term recognises short-term business and economic disruption which does the least damage to the economy and the livelihoods of millions of working people.”

Sara Williams, CEO of Staffordshire Chambers of Commerce called for interim packages of support.

She said: "The latest business data has found a marked improvement in business conditions in Q2 as Covid restrictions eased, which demonstrates a growing confidence in the economy.

"Therefore we hope that businesses will be able to support the bigger financial contributions that will be asked of them.

"However, we must mindful that some businesses with large percentages of staff members accessing the scheme are within sectors that have not been able to reopen fully, and therefore the government should look at bespoke interim packages of support until all sectors can operate at their pre-pandemic levels."

Andy Street, the Mayor of the West Midlands, said it is important for the Government to monitor the affect of the change to furlough.

He said: “The Government’s furlough scheme has provided unprecedented levels of support and has unquestionably helped to protect hundreds of thousands of livelihoods across the West Midlands.

“However this level of support cannot go on forever, and I can understand why the Government is beginning to slowly scale back the scheme as restrictions are eased.

“It is important the Government monitors the affect this change to furlough has and considers further support measures if necessary to protect businesses, particularly those in sectors that could be much slower to recover.”

The furlough scheme, formally called the Coronavirus Job Retention Scheme, started with the Government paying 80 per cent of a worker’s wages, up to £2,500 per month, if they were not able to work due to the impact of the pandemic.

Employers could choose whether to make up the rest of staff salaries.