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Your support makes all the difference. Read more Chancellor Rishi Sunak is expected to make an announcement imminently on new financial support for businesses after Boris Johnson announced that coronavirus restrictions on social and economic activities could continue for another six months.
Amid reports that Mr Sunak is considering a German-style wage subsidy scheme, the chancellor’s cabinet colleague Dominic Raab confirmed that measures are likely to be unveiled soon “to keep the economy going and salvage jobs”.
And Mr Johnson himself stoked expectations of action from the chancellor, promising the House of Commons: "We will go forward with further creative and imaginative schemes to keep our economy moving.”
The chancellor will be forced to answer MPs’ questions on his plans on Thursday, after Labour secured an urgent debate on its demand for targeted help for the worst-affected sectors.
TUC general secretary Frances O’Grady said ministers need to get round the table with unions quickly to avoid a wave of millions of job losses as businesses batten down the hatches for a grim winter.
And Labour’s shadow business secretary Ed Miliband said the chancellor should outline today the measures he will take to stave off the “disaster” threatening many businesses and workers.
There was no immediate Treasury response to a report in The Guardian suggesting that Mr Sunak will shortly unveil a fresh emergency support package to help businesses through the second wave of Covid-19.
It is understood that he cancelled a planned announcement today on the extension of state-backed loan schemes for struggling companies in order to consider a wider package, with details expected within days.
Mr Raab told LBC radio: “I know he’ll make sure we’ve got the right measures to keep the economy going and in particular to salvage jobs.
“I’m not going to pre-empt what he’s going to announce but I can reassure (you) that it’s going to be targeted in the way he’s proceeded carefully, smartly, I think, today.”
Asked what could be in the package, the foreign secretary said: “There’s all sorts of targeted job support, fiscal regulatory measures that we can take and I know that the chancellor keeps them under review.”
With the furlough scheme - under which the state paid 80 per cent of wages for up to 9 million workers - due to come to an end on 31 October and other financial support schemes being wound down, Mr Sunak was already coming under intense pressure from Labour and the unions to extend support for the most hard-hit sectors, like aviation, hospitality and tourism.
Shadow chancellor Anneliese Dodds has called for a new scheme modelled on Germany’s Kurzarbeit system, under which employees in viable businesses facing a temporary lull due to circumstances beyond their control can go onto part-time work, with the state paying the remainder of their wage and providing training opportunities.
CBI director general Dame Carolyn Fairbairn said that Mr Johnson’s announcement had come as a “crushing blow” to thousands of businesses, particularly in retail and hospitality, which had been relying on a busy Christmas to offset some of the losses of the lockdown.
“It is vital that all announcements of restrictions go hand in hand with clarity on the business support that protects jobs,” she said.
“There must now be a new plan to support businesses this autumn. This should start with a successor to the Job Retention Scheme and allowing cash-strapped businesses to defer their VAT payments from the last quarter – a no-brainer given this latest blow to our economy.”
Ms O’Grady said that unions - who were involved in discussions on the design of the original furlough scheme - were ready to sit down with the chancellor to help draw up a replacement.
The TUC has put forward a Job Protection and Upskilling Deal, under which the government would provide ongoing financial support for companies with a viable future as well as funding reskilling for the jobs of the future, free for any worker whose employer needs them to work for less than 50 per cent of their normal hours and backed by a state contribution of 80 per cent of wages for hours they are not in work.
"The TUC stands ready to work with government and business to protect jobs,” said Ms O’Grady.
"We have published detailed proposals for a new short-time working and upskilling scheme.
"With the right approach we can stop mass unemployment scarring millions. My message to ministers is clear: let's get around the table and fast-track a new plan."
Mr Miliband said: “We support the introduction of new restrictions to tackle this virus, but we cannot escape the massive economic challenge it creates. It is essential that public health measures go hand in hand with economic support, or we will see disaster for many businesses and workers.
"Businesses are already having to contribute to the costs of furlough, putting jobs at risk, and we are now perilously close to the furlough cliff-edge. Labour has outlined an alternative – the Job Recovery Scheme. This would enable businesses in key sectors to bring back staff on reduced hours with government backing wages for the rest of the working week, saving jobs and giving businesses the certainty they need.
"The Government must urgently outline today the measures they will take to prevent mass unemployment. They must not delay any further because businesses will be taking decisions in the coming days about what their response will be. They need to know that the government will stand behind them."
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