UK government pandemic response

I can see this will be a big issue in some rural areas, which are highly dependent on tourism. I suspect many businesses are likely to throw the towel in rather than re-start in very unpromising trading circumstances as the furlough payments begin to dwindle. This is notwithstanding my trailing of the positive story about the resilience of rural businesses in Scotland. Let’s hope I’m wrong. This article tells us:

Businesses will have to pay at least a fifth of the wages of furloughed employees from August, it has been reported.

The chancellor, Rishi Sunak, is expected to announce next week that employers will have to begin contributing as the lockdown is eased further, according to the Times.

Employers will be permitted to take furloughed workers back part-time, and all employers using the coronavirus job retention scheme will be required to make the payments, even if they remain closed, according to the paper.

The Treasury said it was “not steering away” from the story, which is understood to have been briefed by officials, and it did not deny its accuracy.

A Treasury source told the Times: “We’ve got two full months of support left and afterwards the government will help to pay people’s wages, but it’s fair to everyone that businesses contribute as they get back to work.”