Industry welcomes Chancellor's announcement on Job Retention Scheme and Self-Employed Income Support Scheme

Dame Carolyn Fairbairn, Director-General of Confederation of British Industry (CBI), said:

“The Government’s support throughout the lockdown so far has been a lifeline for businesses, employees and the self-employed. The changes announced will help ensure the schemes stay effective as we begin a cautious recovery.

“Introducing part-time furloughing at the same time as more stores and factories start to open will help employees to return to work gradually and safely. Many more businesses will feel supported during this vital restart phase.

“Firms understand the scheme must close to new entrants at some point and that those using it in future will need to make a contribution to help manage the costs. However, previously viable firms not able to open until later, particularly in leisure, hospitality and the creative industries, may need further assistance in the coming months.”

Mike Cherry, National Chair of the Federation of Small Businesses (FSB) said:

“The furlough and self-employed schemes have been a true lifeline for all those protected by them – continuation, certainty and increased flexibility will boost economic recovery and help us get through the turmoil created by the coronavirus.

“Small firms have long been the backbone of the UK economy and these policies will help keep it that way. Keeping the self-employed and those who work in a small business attached to the labour market is crucial to prevent scarring of the economy – the package today gives certainty and support to millions.

“We will continue to work with the Government to make sure small firms can come out the other side and get back to what they do best – creating jobs, fuelling growth and powering our communities forward.”

Adam Marshall, Director General of the British Chambers of Commerce (BCC) said:

“The Chancellor has listened to business communities and struck a careful balance that will help many firms bring furloughed staff back to work flexibly over the coming months.

“The gradual reduction in furlough contributions from the Treasury will give businesses additional time to rebuild their income streams and cash flows, and the decision to give businesses maximum flexibility to bring people back part-time will be appreciated. 

“The extension of support for the self-employed will come as welcome relief for those who have seen their livelihoods impacted by the virus. It is right that this group continues to receive similar levels of support to those on PAYE.” 

Edwin Morgan, Director of Policy at the Institute of Directors (IOD) said:

"The furlough scheme has played an immense role protecting jobs, and business leaders understand it couldn't be sustained at the same level forever. This is a much more gradual tapering than many were expecting, reflecting the concerns the IoD has raised. The ability to bring people back part-time is crucial, and we're delighted the Treasury has taken on board our members' calls to bring this in as soon as possible.

“Extending SEISS is also a welcome move, and reflects the immense challenges many self-employed people are facing."

Derek Cribb, CEO of the Association of Independent Professionals and the Self-Employed (IPSE), said: 

“It will be an overwhelming relief to self-employed people who are eligible for SEISS that their support has been extended. It is very welcome that the Chancellor has once again heeded our calls and taken steps to get many of the self-employed, who are particularly struggling in the Coronavirus crisis, the income support they so badly need.”

Brian Berry, Chief Executive of the Federation of Master Builders (FMB), said:

“We strongly welcome the extension of the Self-Employed Income Support Scheme, which means construction tradespeople will not face a cliff-edge in terms of support. This is essential for those who are not yet able to return to work. Furthermore, introducing flexibility into the Job Retention Scheme will give businesses the scope they need to scale-up activities at the right pace for their firm. Retaining the construction workforce is essential to ensure the industry stands ready to build back better as the country recovers from the impact of the coronavirus.”

 Stephen Phipson, CEO of Make UK, the manufacturers’ organisation commented:

“It is welcome news for manufacturers that monetary support to businesses through the Job Retention Scheme will remain unaltered for the next two months giving businesses much needed time to recover order books and start to get production levels back on track. Crucially the Chancellor has also delivered the flexibility which industry so desperately needs to bring its workforce back in a staggered way allowing for imaginative working patterns until business recovers.

“Industry has always accepted that Government could not continue to pay indefinitely and understands that cost to the taxpayer had to be reduced. But this gradual increase in the amount companies contribute to their employee wage bill will buy companies vital time before they are asked to take on the full cost burden.

“The Chancellor has today protected many more jobs and kept vital skills within the sector to help power the economic recovery which the country so needs as we come out of the COVID crisis and the extension of the Self-Employment Income Support Scheme will also help protect vital elements of the supply chains as we go forward.”

Steve McNamara, General Secretary of Licensed Taxi Drivers Association (LTDA) said:

“The extension to the furlough scheme for the self employed is much needed and fantastic news for Cabbies across the Country. It highlights how the Chancellor is listening to, and helping those who need it, well done!”