LISTEN: Targeted furlough scheme for hospitality industry welcomed

By Q Radio News

News of a targeted furlough scheme for the hospitality sector has been welcomed.

Under the new rules, workers at businesses forced to shut due to stricter lockdown measures will have two-thirds of their salaries paid by the government.

Chancellor Rishi Sunak unveiled the expansion of the Job Support Scheme, which is a successor to the furlough scheme, saying: "It will provide a safety net for businesses across the UK who are required to temporarily close their doors, giving them the right support at the right time."

The government will pay employees who cannot work 67% of their salaries, up to £2,100 a month.

The scheme will come into force on 1 November and run for six months before being reviewed. Employees must be off work for a minimum of seven days to be eligible.

Just finished a constructive discussion with the Chancellor and Chief Secretary to the Treasury about the latest support package. This is something we have been pressing for to help companies who have had to stop trading. There will also be a significant consequential for NI. https://t.co/ETgUl6aO3v

— Arlene Foster DBE PC #ProudofNI. (@ArleneFosterUK) October 9, 2020

Arlene Foster gave her reaction to Q Radio:

One local politician to welcome the news is Colum Eastwood, MLA for Foyle where restrictions on the hospitality sector are in place.

The SDLP leader wrote to Rishi Sunak earlier this week with proposals for a robust intervention that would protect workers, including the extension of the furlough scheme.

He has also called for confirmation that the devolved administrations will be able to activate the new scheme depending on local restrictions.

Colum Eastwood MP said:

Colum Eastwood

“Earlier this week, I wrote to Rishi Sunak outlining the need for an extension to the furlough scheme as the most basic step in a robust programme of interventions needed to protect workers and businesses in areas with new restrictions.

"I welcome the U-Turn announced today after weeks of British Government Ministers refusing to admit that this is the only way to save jobs.

“It should be a basic principle of Covid recovery that if you’re going to introduce restrictions that effectively shut businesses down, you have to provide financial support to secure the livelihoods of people who work in the area.

"I’m glad that the British Treasury has finally given in and listened to the voices of MPs and businesses in areas affected by increased restrictions.

“We now need to be assured that the devolved governments will be able to activate the scheme in line with restrictions decided upon by each administration. If managed properly, this will be a boost to businesses in places like Derry and Strabane in incredibly difficult times.

"But it’s only a starting point. The SDLP will continue to use our influence in the Executive and at Westminster to deliver results for our communities.”

Commenting on the Chancellor’s statement of the expansion of the Job Support Scheme, Retail NI Chief Executive Glyn Roberts said:

Glyn Roberts

“Hopefully this will give some reassurance to businesses that face likely closure if the Executive moves to a second lockdown. The Chancellor also announced an increase in funding for the Executive to provide further support and we will be engaging with Ministers next week on the detail of this”

“The Executive is walking a tightrope of reducing the transmission of the virus along with keeping the economy going. However, a second lockdown would result in economic devastation off the scale, resulting in thousands of jobs being lost, businesses collapsing and a huge impact on the mental and physical health of our community”

“A second lockdown is simply not an option”