Chancellor Rishi Sunak reveals emergency jobs rescue package to replace furlough

Setting out his ‘winter economy plan’, Rishi Sunak said the Jobs Support Scheme will replace the furlough scheme when it ends on October 31.

It comes amid fears firms will make mass job cuts when the furlough scheme comes to an end.

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.

He also extended the self-employment income support scheme and 15 per cent 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’.

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Labour welcomed the move from the chancellor but criticised the delay in how long it has taken for the chancellor to reveal the furlough scheme’s replacement.

Unions accused the chancellor of using a plaster to cover a ‘gaping wound’ while jobs have already been lost.

Mark Serwotka, general secretary of the Public and Commercial Services union said the furlough scheme should have been extended beyond next month.

He claimed the Conservatives have put ‘ideological opposition’ to state intervention over saving jobs.

‘Any support for jobs and key industries during this unprecedented global pandemic is to be welcomed,’ he said.

‘However, the chancellor’s measures are akin to using a plaster to cover a gaping wound.

‘The Tories’ ideological opposition to increased state intervention is hurting the economy and costing people their livelihoods right now.’

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