Rishi Sunak to make Covid-19 announcement today as pressure grows to extend furlough scheme
Chancellor Rishi Sunak is set to announce further support for jobs and businesses affected by new coronavirus shutdowns amid calls to help the hardest-hit industries and regions.
Mr Sunak is to detail ‘the next stage’ of the Jobs Support Scheme today, ahead of new restrictions expected for the hospitality sector.
Cities in northern England and other areas suffering a surge in Covid-19 cases may have pubs and restaurants temporarily closed to combat the spread of the virus.
Regional leaders and unions have been calling for fresh financial support to prevent further layoffs when new restrictions are imposed.
A Treasury spokeswoman said: “The Chancellor will be setting out the next stage of the Job Support Scheme later today that will protect jobs and provide a safety net for those businesses that may have to close in the coming weeks and months.”
The announcement will come as new figures show the pace of the UK’s economic recovery has slowed considerably.
Sources said it was wrong to describe the new package as a local furlough scheme, which some have called for the Government to develop.
The furlough scheme, which has supported millions of workers and warded off larger levels of job losses, will cease at the end of the month.
It will be replaced by the less generous Jobs Support Scheme, where the Government will pay up to 22 per cent of wages for workers who come back part-time.
Ministers are expected to outline a three-tier local lockdown system on Monday, which may see high-risk individuals told to stay at home for months and fresh measures for businesses.
There are particular concerns for the hospitality sector, as it faces new restrictions with data indicating it is linked to a significant number of transmissions.
Among the regional leaders criticising the Government for failing to consult them on changes is Greater Manchester mayor Andy Burnham.
“I will use whatever means I can to challenge it to get support for people because otherwise they are going to suffer real hardship this winter, we are going to see businesses failing,” he told Question Time.
Labour leader Sir Keir Starmer, writing in the Daily Telegraph, said the Government had ‘lost control of the virus’ and urged ministers to ‘get a grip’.