Hope for workers facing jobs carnage as Dominic Raab hints at ‘targeted’ rescue
HUNDREDS of thousands of workers whose jobs are under threat when furlough ends were today given hope that they will be saved by new “targeted” support from the Treasury.
Foreign Secretary Dominic Raab said Chancellor Rishi Sunak, was not minded to “wholesale extend the furlough scheme” next month, fuelling speculation that a more targeted replacement is being drawn up by the Treasury.
He also stressed that the Government was aiming to help as many “viable” businesses as possible to safeguard jobs after new tighter restrictions were imposed which could last six months.
One option reportedly being considered by the Chancellor is German-style wage subsidies as part of an emergency package of new support to stop a jobs carnage in the autumn.
The German Kurzarbeit (“short work”) system could see the Treasury subsidising the wages of workers for so-called short-time working.
Support is expected to be targeted at sectors which continue to be hit hard by the pandemic restrictions, including possibly hospitality, aviation and the arts.
Speaking on Sky News, Raab said: “We have saved 12 million jobs, we have got the job retention bonus, the kick start scheme… but I don’t think the Chancellor is minded to wholesale extend the furlough scheme. We are looking at targeted measures.”
He later stressed on Times Radio: “I know that the Chancellor, within the challenges of the public finances… is looking very carefully at introducing the targeted measures that will help businesses and jobs, and preserve as many of those as we possibly can.”
Asked about German-style wage subsidies, he added: “Of course, we look at the international practice.”
Mr Sunak is coming under pressure from Tory MPs and business chiefs to unveil a rescue package very soon or in the Budget, which had been expected in November but may be delayed.
Former Cabinet minister John Redwood tweeted: “Time for the Treasury to tell us how they will compensate businesses prevented from trading by the new six months’ controls.”
The Governor of the Bank of England, Andrew Bailey, also suggested that Mr Sunak needs to “rethink” plans to support firms, having previously backed ending the furlough scheme next month. He said “we’ve moved from a world of generalised employment protection” but help was still needed in some sectors.
Hospitality chiefs have warned of the severe blow of the new 10pm curfew for pubs, restaurants and bars across the country, while the aviation industry and theatres have been crippled by quarantine measures and social distancing rules.
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