Rishi Sunak to outline future of furlough scheme tomorrow
The government will set out details about the future of the coronavirus job retention scheme tomorrow, Prime Minister Boris Johnson has said.
The furlough scheme, which is paying 80 per cent of wages for more than 6m British workers, is currently due to run until the end of June.
But chancellor Rishi Sunak has reassured businesses that they would not face a “cliff edge” at the end of the scheme, fuelling speculation about how the government will look to wind down the scheme.
Answering questions in parliament this afternoon, Johnson confirmed that the chancellor would provide more information tomorrow.
It follows reports that the scheme will be extended until September at a reduced rate of 60 per cent.
The funding will also be available to top up the salaries of staff brought back to work on a part-time basis, the Telegraph reported.
Business groups have warned that a continuation of the job retention scheme — as well as other government support — will be key to returning the country to work.
“Future decisions around the scheme will take into account the wider context of any lockdown extension, as well as the public health response, so that people and businesses can get back to work when it is safe to do so,” a Treasury spokesperson said.
Prime Minister Boris Johnson last night urged millions of people across the UK to return to work as the government began a gradual easing of lockdown measures.
People who are unable to work from home, such as construction and manufacturing workers, should be “actively encouraged” to return to work, he said.
The government said it will issue further guidance this evening about how employers can keep their staff safe.
In a more detailed plan published this afternoon, the government also said that some non-essential retailers in England could be allowed to reopen as soon as 1 June.
Some pubs, restaurants and cinemas could open as early as 4 July as a part of a “coronavirus recovery strategy”.
However, the guidance is only a draft and could change depending on the trajectory of the UK’s infection rate.