New Furlough Package For Businesses Forced To Close

In Covid-19, Featured

Rishi Sunak has been unveiling a new plan to help staff in areas forced to close.

Looking like puppy who has just learnt to understand human language, Sunak unveiled the latest measures to try and lessen the blows they are dealing to the hospitality industry. In truth it seems to be giving a piece of paper to someone in the ring with Anthony Joshua.

There are two areas that have been outlined and both are for companies who are legally forced to close, as has happened in certain areas of Scotland and rumoured to be announced next week for Liverpool, Manchester and Newcastle.

  • First up the government will pay two thirds (67%) of the wages (up to £2,100 a month) for staff.
  • Secondly more regular access to Business Grants up to £3,000 a month paid every fortnight for these businesses (this only applies to England).

Here is the kicker – these packages start on November 1st (and available for 6 months) so no use right now for anyone being forced to close before then, sorry Scotland.

The details of how these are going to work logistically are yet to be announced.

Oh, and before anyone asks, no the 2/3rds won’t include TRONC (not confirmed but…. it won’t).

Don’t get us wrong. This is a huge weight off the shoulders of those who were staring down the barrel of no wages, in fact a lot of people will end up being better off than working under the 10pm curfew. However we don’t know how these wages will be worked out but more worrying is the companies these people work for.

‘Up to £3K’ a month is a sum that many, if not most, venues will not be able to feasibly survive on. With rent and rates to pay alone that will take most over the top. If the venues go under then the staff lose their furlough money. That is what we are worried about.

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