Business leaders say new Government support for companies should “cushion the blow” for those most affected by new coronavirus restrictions, but unions say more needed to be done to save jobs.
Chancellor Rishi Sunak announced that the Government will pay two thirds of the wages of staff in pubs, restaurants and other businesses if they are forced to close in local lockdowns.
Roger Barker, from the Institute of Directors, said: “This new intervention should provide a lifeline for many companies and people impacted by the efforts to stop the virus spreading.
“Alongside wage support, ramping up grants for affected firms marks a sensible step.
“The Government should also remain alive to the potential second-order impacts of local lockdowns, which will affect firms in other areas and across the supply chain.”
Sacha Lord, Night Time Economy Adviser for Greater Manchester, broadly welcomed the support but questioned the timing, arguing that businesses will be left with a three-week window without support if the new measures come in on November 1.
TUC general secretary Frances O’Grady said the scheme will protect jobs but ministers still need to do more to stop the devastation of mass unemployment.
She said: “Firms which aren’t required to close but will still be hit by stricter local restrictions need a more generous short-time working scheme, and there needs to be extra help for self-employed people in local lockdown areas too.
“Nationally, industries like the arts, hospitality, retail and aviation face a long, tough winter. These sectors need targeted help.”
Dame Carolyn Fairbairn, director-general of the CBI, said new restrictions to curb numbers feel unavoidable.
Dame Fairbairn said: “The Chancellor’s more generous job support for those under strict restrictions should cushion the blow for the most affected and keep more people in work.
“But many firms, including pubs and restaurants, will still be hugely disappointed if they have to close their doors again after doing so much to keep customers and staff safe.”
Transport Salaried Staffs’ Association leader Manuel Cortes said: “It’s been blindingly obvious to everyone except our Government that for the public to comply with lockdowns without being condemned to poverty, then support must be given.
“We desperately need support for our travel trade, which has effectively been put into lockdown as an entire sector.”2
Sophie Wingfield, Director of Policy at the Recruitment and Employment Confederation, said it's the 'right call', but the Chancellor must be mindful that shutting of businesses in affected areas will have knock-on effects right down the supply chain.
She said: "This includes recruitment firms which have been working hard to supply staff to businesses in sectors like hospitality as they reopened. We need to make sure the right support reaches those businesses too. We must also ensure temporary workers, a huge source of strength for businesses right now, do not fall through the net and that the scheme works effectively for all forms of worker – which took too long to establish in the original furlough scheme.”
