Wakefield Council welcomes wages 'top-up' as furlough draws to an end

Wakefield Council has welcomed the government announcement of schemes which will continue to support businesses and workers by topping up their wages..
Chancellor Rishi SunakChancellor Rishi Sunak
Chancellor Rishi Sunak

Chancellor Rishi Sunak announced that the government and firms will cover up to two-thirds of their hours for the next six months.

It is hoped this will encourage businesses to restart, especially those unable to bring employees back full-time due to a drop in business.

Hide Ad
Hide Ad

The ‘Jobs Support Scheme’ will replace the furlough scheme when it ends on October 31 and means that businesses will have the option of keeping employees in a job on shorter hours, rather than making them redundant.

A more flexible businesses loan scheme was also announced – meaning businesses that have borrowed money through the government's loan scheme will be given more time to repay the money.

Additionally, new measures mean businesses and the self-employed will be able to spread the cost of their Value Added Tax (VAT) bills to help with cash flow. For hospital and tourism businesses - VAT will remain at five 5 percent, until 31 March, providing support for sectors hit the hardest.

HMRC figures show approximately 47,800 claims to furlough jobs were made in Wakefield by the end of August 2020 - representing three out of 10 workers in the district.

Hide Ad
Hide Ad

Coun Darren Byford, Wakefield Council’s cabinet member for economic growth and regeneration, said: “We welcome today’s announcement. The government are providing flexibility and reacting to the uncertainty that lies ahead.

“Extended loan terms will help businesses to reduce their monthly payments, making paying it back more manageable. It will allow many businesses to gradually increase their productivity and rediscover their customer base over time.

“I know that the thought of the furlough scheme coming to an end was a real concern for residents and businesses in our district who have been badly affected by this pandemic.

"I hope that this new scheme gives them a bit of breathing space and allows them to keep their employees in a job, whilst having their wages topped up by Government.

Hide Ad
Hide Ad

“If you need any help or advice on today’s announcement or have any other concerns, please get in touch and see how we can support you.”

For further information click here. To speak to a business advisor or to find out how the recent announcement affects your business, visit www.wakefieldfirst.com or call 01924 306630.