NI businesses say Rishi Sunak’s new emergency jobs scheme will give them ‘greater certainty’ for six months

The Jobs Support Scheme, which will replace the furlough scheme when it ends, will see workers get up to 77% of their normal salaries for six months.

It aims to stop mass job cuts after the government introduced new measures to tackle coronavirus.

Chancellor Rishi Sunak said it was part of a wider “winter economy plan”.

Stormont Finance Minister Conor Murphy said he welcomed the new support scheme but requested more information.

He said: “I welcome the fact that a job support scheme has been introduced to replace furlough. However, I still have concerns and will seek clarity in relation to the scheme when I speak to the Chief Secretary to the Treasury later today.

“Many businesses have taken on substantial debt during the Covid pandemic. I have been calling for reasonable repayment arrangements and welcome the additional time provided to repay these loans.

“The extension of the 5% VAT rate for hospitality and tourism is also welcome given how badly impacted these sectors continue to be.”

The Finance Minister said he would speak later today speak with the Chief Secretary to the Treasury and will raise the cancellation of the Autumn Budget.

He added: “I intend to raise with Steve Barclay my significant concern about the decision to cancel the Autumn Budget. This will make it more difficult for the Executive to develop its spending plans.”

Retail NI Chief Executive Glyn Roberts said: “This is an unprecedented and welcome intervention in the labour market at a critical time for our economy.

“The Chancellor has adopted the right approach in targeting support to those businesses and employees who continue to struggle with this pandemic”

“With many independent retailers facing huge difficulties the Job Support Scheme and other measures in this statement will give them greater certainty for the next six months.”

Ian Henry, President of Northern Ireland Chamber of Commerce and Industry (NI Chamber), said: “The measures announced by the Chancellor provide a welcomed response to the business community’s call for a new generation of support to help protect livelihoods and ease the cash pressures faced by firms as they head into a challenging and uncertain winter.

“The new Jobs Support Scheme has the potential to help many companies hold on to valued, skilled employees – however it looks like a complex system and businesses will be eager to see the detail first and then consider whether and how they will be able to use the scheme.

“The Chancellor has also listened to calls for an extension of business lending schemes and more flexible repayment terms for loans. With almost 40% of our members saying they have 3 months cash in reserve or less, this will lessen the immediate pressure and provide reassurance for many affected firms at a challenging time.”

Unveiling his new measures today the Chancellor said the resurgence of coronavirus poses a threat to the UK’s “fragile” economic recovery.

As part of a package of measures the Chancellor said the new jobs support scheme was aimed at protecting “viable” roles rather than all posts which have been kept going as a result of state support under the furlough programme.

Under the terms of the new scheme, the Government will top up the wages of people working at least a third of their normal hours.

They will be paid for that work as normal, with the state and employers then increasing those wages to cover two-thirds of the pay they have lost by working reduced hours.

It will cost the Treasury an estimated £300 million a month for every million workers who take up the scheme.

He also extended the self-employment income support scheme and 15% VAT cut for the hospitality and tourism sectors, and help for businesses in repaying government-backed loans.

Mr Sunak delivered his plans in the House of Commons, but Prime Minister Boris Johnson was not there to support him as he was visiting police recruits in Northamptonshire.

Downing Street denied speculation about a rift between at the top of Government, insisting there was “absolutely not” a problem between Mr Johnson and Mr Sunak.

The Chancellor told MPs: “The resurgence of the virus, and the measures we need to take in response, pose a threat to our fragile economic recovery.”

And he acknowledged “we can’t save every business” and “we can’t save every job”.

The Chancellor warned that the economy may be permanently changed as a result of the pandemic.

He acknowledged that people were “anxious, afraid and exhausted” at the prospect of further restrictions but insisted there were reasons to be “cautiously optimistic” about the country’s ability to cope.

But he said that while in March it was hoped there would be a “temporary period of disruption” to the economy, it now appeared there would be a “more permanent adjustment”.

“The sources of our economic growth and the kinds of jobs we create will have to adapt to the new normal,” he said.

Measures announced by Mr Sunak included:

– The new job support scheme, which will be targeted at small and medium-sized firms, with larger companies only eligible if turnover has fallen due to the crisis.

– The existing self-employed grant will be extended on similar terms and conditions as the new job support scheme.

– The temporary 15% VAT cut for tourism and hospitality will be extended until the end of March.

– A new payment scheme will give more breathing space for more than £30 billion of deferred VAT payments, allowing them to make 11 interest-free payments in 2021-22 rather than a lump sum at the end of March.

– A “pay as you grow” measure will extend the repayment terms for bounceback loans from six to 10 years.

– Firms which have taken out coronavirus business interruption loans will see the Government guarantee extended for up to 10 years.

– All loan schemes will be extended until the end of the year.