Extended wage scheme 'should be adapted to meet different challenges in north'
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CAITHNESS business leader Trudy Morris has welcomed the UK government's decision to pay the wages of workers on temporary leave due to the coronavirus for another four months.
But Ms Morris, chief executive of Caithness Chamber of Commerce, wants the scheme to be adapted to meet the different challenges faced by firms in the north.
She spoke after Chancellor Rishi Sunak announced he was extending the Coronavirus Job Retention Scheme until October. It was initially to run from March until the the end of June.
Employees on the furlough scheme will receive 80 per cent of their monthly wages up to £2500 for a further four months but Mr Sunak expects companies to start sharing the cost from August.
Ms Morris described the extension as "welcome news for businesses".
She said: "We have been calling for an extension to this scheme to avoid a cliff edge in June and it is welcome that the Chancellor has listened to the voice of business on this matter.
"The news that the Chancellor will be introducing some flexibility into the scheme from August is also welcome. It is clear that, as we start to move towards the reset, restart and recovery of the economy, businesses need to be able to start bringing their workforce back in a way which is also compatible with public health guidelines.
"However, we would caution that the Chancellor must continue to listen to evidence from businesses as lockdown eases and adapt the scheme in line with what businesses require. In particular, businesses in remote and rural areas like the north Highlands will face different challenges to those in the central belt and other urban parts of the UK, and changes to the scheme should recognise this.
"It is also important that businesses get some clear and early criteria on what flexibility will be introduced into the scheme and what, if any, additional contribution they may be required to make so that they have time to plan accordingly. Businesses require clarity and confidence to make decisions, especially at this uncertain time."
Labour's shadow chancellor Anneliese Dodds also welcomed the extension but queried what employers would be expected to pay. Any changes should not result in an increase in unemployment, she said.
About 7.5 million people – a quarter of the workforce – are now on the furlough scheme which is estimated to be costing £14 billion a month.
