In today's daily coronavirus briefing Chancellor of the Exchequer Rishi Sunak outlined the detail of how The Government would be helping business in the next few months as lockdown eases.
Opening the briefing Rishi Sunak revealed that 131,458 tests were carried out yesterday and 2,095 people tested positive. There was an increase of 324 coronavirus fatalities bring the total UK death toll to 38,161.
The Chancellor explained that from August businesses must start paying towards the furlough scheme as it cannot continue indefinitely.
From August businesses will be asked to pay national insurance and employer pension contributions but the taxpayer contribution will remain at 80% of people's wages.
From September employers will be asked to start paying 10% towards people's wages with the taxpayer contribution towards the scheme at 70%.
From October, taxpayers will pay 60% with employers having to cover 20%.
The scheme will close after that.
From 1 July, flexible furlough will be introduced meaning employers can bring employees back for a number of days per week.
The Self-Employment Income Scheme will be extended with applications open in August for a second and final grant up to a total of 70% of average monthly trading profits to a total of £6,750.
Commenting on the Chancellor’s announcement today (29th May) on additional changes that will be made to the Job Retention Scheme from July onwards, Business West Managing Director Phil Smith said:
“For all businesses, but especially larger businesses, knowing what the government employee retention scheme looks like into August will be a critical factor in their decision whether or not to start consultations in mid-June on large scale redundancies. These extension details hopefully will have delayed these redundancies - at least for now.
“We have been asking government, via Adam Marshall at the British Chambers of Commerce, for the updated Employee Retention Support to be flexible and allow part time work. Furthermore, to graduate the tapering off from the 80%, thus avoiding employers having to find large swathes of cash to pay wages before their sales pick up. The Chancellor has listened to our pleas.
"A disappointment, however, must be the closure of the furlough scheme to new entrants in a few weeks’ time. The government has possibly shot itself in the foot with this decision."
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