UK chancellor
Rishi Sunak’s announcement yesterday that the Coronavirus Job Retention Scheme, or furlough scheme, would be extended until the end of March 2021 will save jobs, according to the CEO of the Business Travel Association.
The decision means the government will support employers in paying up to 80 per cent of the normal salary employees get. Employers will have to pay the cost of employer national insurance and pension contributions for hours not worked.
Clive Wratten, CEO of the Business Travel Association, said: “The extension of the Furlough Scheme into 2021 is a welcome development. The vast majority of our members believe it will help them protect their businesses throughout the winter months, and many have indicated that it will enable them to save jobs that would otherwise have been made redundant.”
He added: “Whilst this will help protect the business travel sector, airport testing is the only way to get British business travelling again, and that is vital for UK plc. The government must have a testing plan fully in place for when this lockdown ends.”
Meanwhile, ABTA chief executive Mark Tanzer said that while the extension may seem positive, the travel sector needs specific support.
He said, “It is time this government stepped up and supported the UK travel industry. Other sectors who have been hit hard by the pandemic have received tailored support from the government – but travel has been left waiting in spite of clear evidence of the harm that is being done.
“While the extension of furlough may seem positive on the face of it, it needs to be much more flexible for it to make a difference to jobs and businesses in the travel sector. Taking into account that staff will have to work on re-bookings and refunds but won’t be generating any income.”
The government says it will review the scheme in January to decide whether economic circumstances are improving enough to ask employers to contribute more.