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The federal government and companies will high up employees’ wages overlaying as much as two-thirds of their hours for the subsequent six months, the chancellor has stated.
Rishi Sunak stated the Jobs Help Scheme will substitute the furlough scheme when it ends on 31 October.
He set out his “winter financial system plan” after the federal government launched new measures to cease the unfold of the coronavirus.
There are fears companies will make mass job cuts when the furlough scheme ends.
Practically three million employees – or 12% of the UK’s workforce – are on partial or full furlough go away, in response to the Workplace for Nationwide Statistics.
The chancellor stated that workers must work for at the least a 3rd of their regular hours to high quality for the brand new scheme, which begins on 1 November.
Companies which have borrowed cash by means of the federal government’s mortgage scheme may also be given extra time to repay the cash.
And a VAT minimize for hospitality and tourism firms may also be prolonged till March. The minimize from 20% to five% VAT – which got here into drive on 15 July – had been as a result of expire on 12 January subsequent yr.