UK Business Leaders Warn Sunak of his “Failing” Furlough Scheme

The Furlough Scheme isn’t doing much to prevent unemployment in the country, say UK’s Business leaders. Rishi Sunak’s multibillion-pound summer scheme to take hold of country’s unemployment crisis is not keeping up the promise of holding up the rate of job loss and economic crisis in the country. The British Chambers of Commerce (BCC) is asking Chancellor Rishi Sunak to urgently rethink about the scheme as the UK government is proceeding with scaling back of economic responses that were implemented to tackle the Covid-19 impact. The BCC also warned that less than half of the firms in country were working towards adopting the job support measures that were announced by Chancellor Sunak last month.
As the wage subsidy under Furlough Scheme is set to wind down from this month, the BCC, which is leading business lobby group, highlighted the fact that still majority of big businesses are struggling with major cashflow problems and thus creating a huge risk in job security leading to probable job cuts across the UK.  
Since the summer statement, in the first comprehensive business plan assessment the BCC has highlighted that approximately 43% of firms in the country were planning to take up the £1,000 per head bonus scheme being offered in firms that have vowed to retain the furloughed employees till January. The figures are a result of a survey done with more than 500 businesses. Survey also revealed that around 40% of the firms -said that they couldn’t use the scheme. The bonus plan has been designed to take place transitionally as the Furlough Scheme starts to wind down this month. Sunak has also been warned previously by many leading thinktanks in the country against the plan of ending the Furlough Scheme by the end of October. The experts believe that this would cause exponential jobless.
Read more article here:
https://www.theeconomyclub.com/category/uk/                                                    

Leave a Reply

Your email address will not be published. Required fields are marked *