The UK’s Treasury Select Committee is urging chancellor
Rishi Sunak to “carefully consider targeted extensions” to the furlough scheme that
is currently due to end in October.
The recommendation could raise the hopes of the travel and
hospitality sectors, where job losses are likely to accelerate this autumn when
the Coronavirus Job Retention Scheme comes to an end on 31 October.
In its second report on the economic impact of coronavirus, the
group – comprising MPs with the remit of assessing and advising on government
spending – says the government should focus on helping businesses with
long-term futures.
“Our second report of the inquiry focuses on emerging challenges as lockdown
measures are lifted,” said Mel Stride MP, chair of the Treasury Committee.
“One such challenge is to target assistance effectively at
those businesses and individuals who need it. The chancellor should carefully
consider targeted extensions to the Coronavirus Job Retention Scheme and
explain his conclusions.”
Stride continued: “The key will be assisting those businesses
who, with additional support, can come through the crisis as sustainable
enterprises, rather than focusing on those that will unfortunately just not be
viable in the changed post-crisis economy.
“This requires a very difficult set of judgements; it is where
careful analysis and creative thinking will be critical.”
Germany, France and Australia are among a host of nations that
have extended support schemes into 2021, with Spain considering similar measures.
Meanwhile, a petition lodged with the UK government to
‘extend furlough beyond October for the travel industry’ has so far attracted
more than 34,000 signatures, comfortably passing the 10,000 threshold at which
the government must respond. At 100,000 signatures, the petition will be
considered for debate in parliament.
The developments come in the same week that the UK’s largest
travel management company, American Express Global Business Travel (GBT), has
begun assessing further job cuts having already offered a number of voluntary
redundancy options.
“GBT is in a very strong financial
position, but in the current environment we have to reset our cost base to more
closely align with demand,” said a company spokesperson.
“We have taken measures to protect as
many jobs as possible, including the use of government support schemes where
available, voluntary retirement and voluntary severance programmes, and
introducing new flexible working options.
“There are some areas where
unfortunately these measures alone are insufficient. Only in these
specific circumstances, we will consult with our colleagues on the difficult
decision to implement involuntary reductions. We continue to consult with and
support affected colleagues throughout this period."