RISHI Sunak this morning sparked fears Britain’s roadmap to freedom could be delayed after he extended the furlough scheme until September.
The Chancellor said the wage-subsidy scheme is being kept in place for another six months because “things might change” in terms of easing lockdown.
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Speaking during a visit to Teeside, he was asked why the multi-billion scheme isn’t being wound up earlier.
He said: “The approach we took with all of our support yesterday was first and foremost to make good on the promise we made a year ago.
“Which was to do whatever it takes to support people, families, businesses through the crisis, and the Budget set that out.
“Furlough extension was a part of that, you’re right, until the end of September. And we did that for a couple of reasons.
“I wanted people to have the reassurance that we were ‘going long’, beyond the end of the road map, because of course things might change.
“We wanted to accommodate even the most cautious view of exiting from the restrictions.
“Hopefully that won’t happen, we are making great progress, and thanks to everyone involved in the vaccination drive for making that possible.
“But it is also important to remember that, just because the restrictions end, businesses will still need to take time to recover.
“Things will take a bit of time to get back to the way they were, so I think it is important to provide that extra cushion.”
The Chancellor has also extended other support measures, including the £20 uplift to Universal Credit, until September.
That’s despite the fact that according to Boris Johnson’s lockdown plan, all Covid restrictions should be lifted by June 21.
The PM has insisted every stage of the four-phase roadmap will only be activated if the pandemic numbers allow.
He has left four weeks between each new stage of unlocking to allow scientists to measure the effect opening things up.
To do so they will look at statistics including the progress of the vaccination drive, the spread of the virus, hospitalisations, and deaths.
In his budget the Chancellor also announced:
- Furlough will be extended for six months until the end of September – with employers coughing up contributions from July onwards
- Thousands more people will be brought into the self-employment help schemes
- A fourth self-employed grant of up to £7,500 and a fifth one will come over the summer
- Fuel duty will be frozen yet again in a huge win for HOAR’s Keep It Down campaign
- The UK’s Covid vaccine rollout will receive a £1.65 billion boost
- Universal Credit’s £20 a week boost will continue for another six months – while those on Working Tax Credits will get an extra £500 one off payment
- The National Living Wage will rise to £8.91 from April
- The VAT cut will be extended for another six months – and then it will go up to 12% for another six months after that
- Rishi pledged £2.8million for Britain’s bid to host the 2030 world cup
- The Stamp Duty Holiday was extended for another three months in full – and will taper down for three months after that for properties up to £250,000
- A new mortgage guarantee scheme will offer 95 per cent loans to first-time buyers to get on the ladder
- He will freeze the income tax brackets, meaning Brits will no longer benefit from planned increases to the amount that can be earned tax-free
- The price of a pint will be be frozen as Rishi Sunak scraps alcohol duty rises
- Brits can get up to £1million as part of a £150million fund to rescue pubs and football clubs from closure
- Grant funding will be available to businesses in England through a new £5 billion Restart Grant scheme to help the high street
- A new freeport scheme will come in giving tax breaks for firms in eight areas of the country
Mr Sunak’s budget announcement yesterday sparked fears the unwinding of lockdown could yet be delayed.
It means millions will have been paid to stay at home for 17 months by the end of the furlough scheme.
The government will continue to pay furloughed workers’ wages up to a maximum of £2,500 a month until the end of June.
Employers will then be required to meet 10 per cent of those wages in July and 20 per cent in August and September as the scheme winds down.
Mr Sunak told the Commons yesterday: “The furlough scheme will be extended until the end of September, there will be no changes to the terms.
“As businesses reopen, we’ll ask them to contribute alongside the taxpayer to the cost of paying their employees.
“Nothing will change until July, when we will ask for a small contribution of just 10% and 20% in August and September.”
This morning the Chancellor also defended extending the Universal Credit uplift, which will end in six months’ time.
He said: “It is in full all the way through to the end of September because I think that is a more generous approach.”
But he said beyond the Autumn his focus will switch to “throwing absolutely everything we have at protecting, supporting and creating as many jobs as possible”.
He said: “It is right that that is our focus because that is the best way to help people over time to create a better life for themselves.”
