NI business chiefs: Extension of furlough scheme a huge relief

The Northern Ireland Chamber of Commerce chief executive, Ann McGregor, said planned changes to the scheme will mean many furloughed workers will go back to work part-time.

“The extension of the Job Retention Scheme will come as a huge help and a huge relief for businesses – especially for those sectors that cannot open yet,” she said.

“The changes planned will help businesses bring their people back to work through the introduction of a part-time furlough scheme.”

The furlough scheme, officially known as the Coronavirus Job Retention Scheme, will remain open until the end of October with subsidies worth 80% of furloughed workers’ salaries – up to £2,500 – paid to employers by the government.

But after July,employers will be asked to begin paying a fraction of an employee’s salary with furloughed staff expected to begin returning to work part-time while still receiving 80% pay.

Ms McGregor said the Northern Ireland Chamber would press the Treasury for “flexibility”.

“Along with our colleagues at the British Chambers of Commerce, we will engage with the Treasury and HMRC on the detail to ensure that this gives companies the flexibility they need to reopen safely,” she said.

“NI Chamber and BDO NI research shows that the scheme has become a key part of wider government support for businesses in Northern Ireland, with 85% of them furloughing some or all of their staff.

“Over the coming months, the government should continue to listen to business and evolve the scheme in line with what’s happening within the business environment.”

She added: “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.”

Retail NI chief executive Glyn Roberts also described the extension of the scheme as a “relief”.

He added: “It is welcome that this revised plan allows for the introduction of a part-time furlough for workers.

“We hope that greater numbers of retailers will soon be able to reopen and move off this scheme as we make greater progress in reopening our local economy.”

The UK-wide Confederation of British Industry (CBI) described the extension of the government subsidy scheme as “essential”.

Dame Carolyn Fairbairn, the business group’s director-general, said: “As economic activity slowly speeds up, it’s essential that support schemes adapt in parallel.”

She added: “The greater the number of good businesses saved now, the easier it will be for the economy to recover.”