West Midlands business leaders welcome furlough extension

Chancellor Rishi Sunak's announcement that the Coronavirus Job Retention Scheme will be extended to October has been welcomed by West Midlands business leaders.

Corin Crane, chief executive of the Black Chamber of Commerce, said: “We have been lobbying for an extension of the furlough scheme, alongside our fellow business support agencies, for a number of weeks now and today’s announcement is very welcome.

“Research carried out by the British Chambers of Commerce has shown that the scheme has become a key part of wider Government support for businesses, with more than 70 per cent of firms surveyed furloughing a portion of their staff.

"We are now seeing the very cautious approach to reopening the economy, so the last thing we want are unnecessary redundancies across all business sectors in our region and across the UK.

“Over the coming months, the Government should continue to listen to business and evolve the scheme in line with what’s happening on the ground. Further support may yet be needed for companies who are unable to operate for an extended period, or those who face reduced capacity or demand due to ongoing restrictions.”

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BCC Director General Adam Marshall said: "The extension of the Job Retention Scheme will come as a huge help and a huge relief for businesses across the UK. The Chancellor is once again listening to what we’ve been saying, and the changes planned will help businesses bring their people back to work through the introduction of a part-time furlough scheme. We will engage with the Treasury and HMRC on the detail to ensure that this gives companies the flexibility they need to reopen safely.

“Our research shows that the scheme has become a key part of wider Government support for businesses, with more than 70 per cent of firms surveyed furloughing a portion of their staff.

Cliff edge

Dame Carolyn Fairbairn, Confederation of British Industry director-general, said: “The Chancellor is confronting a challenging balancing act deftly. As economic activity slowly speeds up, it’s essential that support schemes adapt in parallel.

“Extending the furlough to avoid a June cliff edge continues the significant efforts made already and will protect millions of jobs.

“Introducing much needed flexibility is extremely welcome. It will prepare the ground for firms that are reawakening, while helping those who remain in hibernation. That’s essential as the UK economy revives step by step, while supporting livelihoods."

Mr Crane has also called on the Government to deliver a more detailed plan for the phased easing of lockdown restrictions and further information on financial support schemes.

He spoke out after the release of the Government’s 50-page plan to exit the lockdown, and said it was imperative the Government laid out a more detailed “road map” to help businesses plan their futures with some certainty.

Mr Crane added that business leaders had been crying out for further information for the phased easing of the restrictions, co-ordinated across the region and the UK and supported by clear guidance.

“This marks the first glimmer of light for our faltering economy, a phased and careful return to work is the only way to protect jobs and pay for future public services," he said.

“Success will rest on flexibility within a framework; clear guidance which firms can adapt for their particular circumstances.

"However, businesses still need further clarity on what ‘Covid secure’ looks like, but this guidance does help businesses to plan and prepare their workforce for a return to work," said Mr Crane.

He stressed that the coming weeks should see business, the Government and employee representatives working together as part of a national effort built on openness and trust.

“This is the only way to revive the UK economy and protect both lives and livelihoods, we all share the Prime Minister’s ambition to see more people return safely to work over the coming weeks," he said.

“Companies will do everything they can to protect employees and customers, maintain social distancing and operate successfully as more sections of the economy are permitted to reopen.

“Firms will also need to know that Government support schemes, which have helped save millions of jobs in recent weeks, will continue for as long as they are needed so that they can plan ahead with confidence. Financial support will need to evolve for sectors moving at different speeds – some remaining in hibernation, while others get ready to open safely," said Mr Crane.

He emphasised that the timing of further easing of restrictions must be guided by the public health evidence, but said that businesses needed their practical questions answered so they could plan to restart.