The Chancellor Mr Rishi Sunak is to announce an emergency plan today 24th September, after Prime Minister Boris Johnson said the UK could have to endure another six months of coronavirus restrictions.
He is expected to announce his plan for protecting jobs in the wake of the government’s new coronavirus restrictions for England.
He told his Twitter followers the scheme would be called the ‘Winter Economy Plan’ and it will reportedly include VAT cuts, loans for hard hit businesses and wage subsidies.
It could also see the government and companies share the cost of topping up wages for staff members only able to work part-time due to the pandemic, dubbed the “flexible furlough” scheme.
Another option being considered to replace the furlough scheme similar to Germany’s Kurzarbeit, or shorter work-time policy, under which firms can cut working hours in economic downturns with the state replacing part of their lost income.
His latest move comes after mounting pressure from business groups, MPs and unions to extend the furlough scheme amid fears the new measures will damage the economy.