The Chancellor announces emergency jobs support scheme as Furlough ends

Chancellor Rishi Sunak has said it is “impossible” to predict how many jobs the government’s new wage subsidy scheme will save. The scheme, set to replace furlough, will see the government top up the pay of people unable to work full time. It aims to stop mass job cuts after the government introduced new measures to tackle the recent rise in coronavirus cases. Under the Job Support Scheme, if employers bring back workers part time, the government will help top up their wages with employers to at least three quarters of their full time pay. It will begin on 1 November and last for six months.

The previously announced cut in VAT for hospitality and tourism companies will also be extended until March. The cut from 20% to 5% VAT – which came into force on 15 July – had been due to expire on 12 January next year. In addition, the Chancellor also announced that businesses that have borrowed money through the government’s loan scheme would be given more time to repay the loan.

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