Responding to the Chancellor’s statement in the House of Commons,
announcing that the furlough scheme will be extended, Jonathan
Geldart, Director General of the Institute of Directors, said:
“Extending furlough is the right call from the Chancellor. This
will give directors much greater confidence about their ability
to keep staff on board through the Winter.
“While the Treasury had improved the Jobs Support Scheme,
furlough is a known quantity. To support as many jobs as possible
through the crisis, consistency and clarity is vital. Businesses
need the ability to plan ahead, with cashflow being critical
through the first quarter of 2021 particularly in light of
potential Brexit impacts. The more information government can
provide on support for the rest of year, the better position
organisations will be in.
“The increase in self-employment support is also welcome.
However, while the Government has extended some measures, it is
still failing to fix major gaps in the support. Many
self-employed, including small company directors, continue to be
left out in the cold. Grant funding through local authorities
could help address this issue, otherwise those missing out will
face a harsh Winter.
“It’s clear that the Government needs to now reinstate and extend
insolvency protections to prevent company collapses. The Treasury
should also work with banks to ensure that loans reach the front
line. Finally, the Chancellor should look to marry defensive
measures like the furlough with policies to get firms on the
front foot, encouraging job creation and investment through the
tax system.
“The response to the pandemic has highlighted some tensions in
our devolution set-up. It’s paramount that businesses aren’t
caught in the crossfire of political negotiations over
coronavirus support. The onus is on all sides to work
constructively moving forward.”
