Mixed reaction from trade organisations as government announces new jobs support scheme

Chancellor Rishi Sunak announced on Friday that the government will pay two-thirds of workers’ wages for business that are forced to shut by lockdowns that are now being imposed.

The government will cover the cost of wages up to a maximum of £2,100 a month for every employee in companies forced to close. It is also increasing grants for businesses from up to £1,500 every three months to £3,000 a month.

The chancellor said the additional support was needed as the nation prepares for a “difficult winter” with new regional lockdowns now being imposed.

Ian Wright, chief executive of the Food and Drink Federation said: “The chancellor’s introduction of support for hospitality and other businesses forced to close by government restrictions is very welcome. It does not, however, address the difficulties for those suppliers to businesses which are forced to close.

“These – including many food manufacturers which provide meals, drinks and other products – are equally vulnerable to the impacts of government measures. Through no fault of their own, they face being shut with no income.

“Without additional support for the supply chain throughout lockdown, many of these squeezed middle suppliers will simply not survive.”

Andrew Goodacre, chief executive of the British Independent Retailers Association (Bira), said: “While economic support is always welcome, it must be tangible for the independent retail sector. We are seeing worsening trends on the high streets with footfall falling.

“The potential for closing hospitality and service sectors will have a further detrimental effect on footfall and consumer confidence – driving more people to online shopping.

“Whilst it is right to support the hospitality sector, the government also needs to remember that the fragile retail sector is also affected by any new restrictions and requires ongoing support if these businesses are to survive.”

Glyn Roberts, chief executive of Retail NI, said: “Hopefully this will give some reassurance to businesses that face likely closure if the executive moves to a second lockdown. The chancellor also announced an increase in funding for the executive to provide further support and we will be engaging with ministers next week on the detail of this”

“The executive is walking a tightrope of reducing the transmission of the virus along with keeping the economy going. However, a second lockdown would result in economic devastation off the scale, resulting in thousands of jobs being lost, businesses collapsing and a huge impact on the mental and physical health of our community.”

Retail union Usdaw said the chancellor’s scheme “failed to address the knock-on effect on retail”.

Paddy Lillis, Usdaw general secretary, said: “We are concerned that this scheme will be of no help to the retail businesses who continue to struggle in this crisis even while they are allowed to stay open.

“In local lockdown areas where hospitality is closed, it will have a serious knock-on effect on the high street, and even though we expect that shops will be allowed to stay open they will be suffering even more from reduced footfall. Where is the support for those businesses?

“The scheme should be extended to cover all businesses that are suffering in this crisis, whether or not they are required to close.”