Business leaders in Coventry and Warwickshire have welcomed the extension of the furlough scheme until March 2021 – but say firms now need to see a plan for keeping the economy open.
Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, said the ability to furlough staff on 80 per cent pay had been a lifeline for many businesses and their employees at the beginning of the crisis.
She said extending it to March would provide further relief for companies across Coventry and Warwickshire – but that the Government needed to use the next four weeks to work out a strategy to keep the economy open.
Bennett said: “The Chancellor’s move to extend the furlough scheme is very welcome and, I have no doubt, will have brought much-needed relief to firms across the region.
“At the start of the crisis, it had a major impact on encouraging many firms not to part with staff immediately and this extension to March will hopefully provide some comfort for businesses and their staff as we head into winter.
“However, businesses across Coventry and Warwickshire really want to see a plan for how we can keep the economy open as much as possible because while the support is welcome, companies of all sizes and sectors really want the opportunity to invest and grow.
“We’d urge businesses across the patch to make sure they contact the Chamber if they need any help at this time or if they need any assistance in accessing the support available.”
British Chambers of Commerce Director General Adam Marshall said: “A further extension of the furlough scheme and more generous grants for the self-employed are important steps in protecting jobs and providing certainty for our business communities beyond the immediate shock of a four-week lockdown.
"These changes give businesses significant reassurance over an uncertain winter, but many will understandably still wish for the government to give a clearer view of the road ahead. Government must set out longer-term measures over the next 12 months to give firms greater certainty and confidence to plan proactively, rather than to react to changes in support from week to week.
“As well as support on jobs, reduced demand will impact firms’ cashflow across the country, not just those placed under the toughest restrictions. More generous grants will be required if those businesses are to weather a difficult winter ahead.
“Despite the Chancellor’s announcement, there are still many businesses and individuals who have, through no fault of their own, been unable to access any government support since the start of the pandemic and will require support if we are to avoid significant increases in unemployment and business failures.
“Ultimately, there can be no substitute for a fully functioning economy. Fundamentally, that means the government using the time afforded to them through another lockdown to significantly improve the Test, Track and Isolate system, which remains key to keeping the economy open.”