Swindon council leader says chancellor's plan to save jobs is 'sensible compromise'

Workers who have had 80 per cent of their wages paid while on the government’s coronavirus scheme will see that support finish at the end of October.

But those whose employers think are still in jobs worth doing could still receive up to three-quarters of their salary as long as they work a third of their hours.

Chancellor Mr Sunak announced in parliament yesterday job support scheme which will run for six months from the November 1.

He said: “The jobs support will support viable jobs.

“The government will directly support the wages of people in work, giving businesses who face depressed demand the option of keeping employees in a job on shorter hours rather than making them redundant.”

Swindon Borough Council leader David Renard said: “It’s clear that the furlough scheme can’t continue indefinitely – but this will allow people who are still in jobs to be able to work for some of the time and get at least the bulk of their income paid.

“It’s important to stop more people being made redundant. Every business is different and they all need the flexibility to run their own business – but I hope as many of them as possible will try and keep as many of their staff as they can on.

“We needed to avoid a big rise in people being made unemployed and I think this is a sensible compromise which allows that.”

If an employer thinks a job is still viable the member of staff must work for at least a third of their normal hours. They will be paid by their employer as normal for those hours worked.

The government will then pay a third each of the rest of the worker’s normal salary – 22 per cent of that full wage each. It means if someone is able to work for a third of their normal hours, they can be paid 77 per cent of what they would normally take home.

That contrasts will the furlough scheme where the government paid 80 per cent of the wages but the worker was not allowed to work at all.

Coun Renard was also pleased with the chancellor’s announcement that VAT paid by the hospitality sector will remain at 5 per cent instead of 20 per cent until the end of March.

He said: “Support for pubs and restaurants is important to allow that sector of our economy to recover.”

Leader of the Labour group of councillors Jim Grant had written to the government this week urging the Chancellor to extend the furlough scheme.

He said: “This statement from the chancellor finally provides the targeted support that Labour has been calling for.

“We will support any announcement which help keep people in employment and keeping businesses in operation.

“In Swindon, HMRC figures showed that nearly a third of jobs have been furloughed since March. Many companies have benefited from the furlough scheme, and many other independent businesses in the hospitality sector were crying out for targeted support in order to be able to survive the winter.

“Sadly the timing of this announcement was too late for many workers – as the businesses employing them believed there would be no wage support after October 31.

“We are still calling on the government to give us the back to work budget that workers and businesses in Swindon, and indeed our country, badly need.”

Swindon's Conservative MPs backed Mr Sunak’s plans for the economy over the next six months.

North Swindon’s Justin Tomlinson and South Swindon’s Robert Buckland said: “We strongly welcome the Chancellor’s announcement today of a Winter Economy Plan – outlining the next phase of the government's planned economic response to coronavirus.

“The Chancellor has listened to evidence from business and acted decisively. These bold steps will save tens of thousands of viable jobs this winter through wage support, tax deferrals and help for the self-employed.”