The closure of the Coronavirus Job Retention Scheme (commonly known as furlough) is set to take place at the end of October and trade bodies have been calling for “sector specific support” to protect jobs in the trade once it ends.
UKHospitality(UKH), the British Beer and Pubs Association (BBPA) and the British Institute of Innkeeping (BII) are leading calls for a tailored package of measures including an extension of the furlough scheme, VAT cut and business rates holiday.
UKH boss Kate Nicholls said without an extension of the furlough scheme beyond October, the trade would see a “steady stream of job losses for six months”.
The trade body said at least 900,000 people working in hospitality face losing their jobs without a tailored support package.
It added more than a third of the hospitality trade are still on full furlough while an additional 16% remain on flexible furlough.
“The hospitality sector has a proven track record in delivering jobs growth. But we need the Government to be flexible in its approach and to provide the necessary support over the bleak winter months in order for our sector to continue to play a role in the economic recovery,” Nicholls said.
Sunak tweeted yesterday (Wednesday 23 September): “As our response to coronavirus adapts, tomorrow afternoon I will update the House of Commons as our plans continue protecting jobs through winter.”
As our response to coronavirus adapts, tomorrow afternoon I will update the House of Commons on our plans to continue protecting jobs through the winter. pic.twitter.com/eP6aqcocxd— Rishi Sunak (@RishiSunak) September 23, 2020
Sky News has reported the Chancellor is considering introducing a similar plan to the German short-term work scheme – the Kurzarbeit.
This works in that if businesses have to cut employees’ hours, the Government help supplement their pay.
The employee receives 60% of their pay for the hours not worked while receiving full pay for hours worked.