South Yorkshire mayor welcomes government's furlough extension until October

Chancellor Rishi Sunak has announced the UK scheme to pay 80 per cent of workers’ wages on leave due to coronavirus until autumn.

Mr Sunak confirmed the scheme would offer employees 80 per cent of their monthly wage up until July, but then will ask businesses to share the cost of the scheme from August.

From the start of August, furloughed workers will be able to return to work part-time, with employers being asked to pay a percentage towards the salaries of their furloughed staff.

The employer payments will substitute the contribution the government is currently making, ensuring staff continue to receive 80 per cent of their salary, up to £2,500 a month.

New figures show the job retention scheme has protected 7.5 million workers and almost 1m businesses.

Businesses have benefited from more than £14 billion in loans and guarantees to support their cashflow during the crisis.

This includes 268,000 Bounce Back Loans worth £8.3bn and 36,000 loans worth more than £6bn through the Coronavirus Business Interruption Loan Scheme.

Mr Jarvis, Sheffield City Region mayor, said: “I’m pleased the Chancellor has listened and extended the furlough scheme for millions of employees in the UK.

“This extension provides the certainty I called for to ensure that employees and businesses do not see support cut off sharply.

“I urge the government to ensure the end of the scheme is as flexible as possible to provide a smooth transition for businesses and workers across South Yorkshire, and that the Chancellor considers extending support if necessary – particularly for vulnerable sectors if this is needed.

“The government must now begin to work with Mayors to ensure we build not just a strong recovery, but renewal for our economy. A significant stimulus must be at the heart of this, to tackle deep-seated problems in our society and economy.

“Going back to the status quo is simply not an option, and we must seize this opportunity to fix our infrastructure, unlock the region’s potential and deliver a green new deal for the economy and environment.”