{"id":24364,"date":"2020-10-22T15:14:50","date_gmt":"2020-10-22T14:14:50","guid":{"rendered":"https:\/\/unitelive.org\/?p=24364"},"modified":"2020-10-23T12:31:03","modified_gmt":"2020-10-23T11:31:03","slug":"always-running-to-keep-up","status":"publish","type":"post","link":"https:\/\/unitelive.test.igniteamt.com\/?p=24364","title":{"rendered":"‘Always running to keep up’"},"content":{"rendered":"
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Chancellor Rishi Sunak was accused of \u00e2\u20ac\u0098yet another last-minute move\u00e2\u20ac\u2122 after he announced a new package of financial support in his latest economic statement today (October 22), just over one week before the furlough scheme is slated to end.<\/p>\n\n\n\n

As part of the new package of support, additional grants will be made available to communities under tier-2 restrictions, and the government\u00e2\u20ac\u2122s short-time working scheme will be made more generous.<\/p>\n\n\n\n

The chancellor has approved new funding so that businesses \u00e2\u20ac\u201c mostly in the hospitality sector — that are still allowed to operate under tier-2 lockdowns but whose trade has been severely hit because of restrictions on socialising will have access to cash grants up to \u00c2\u01412100 every month.<\/p>\n\n\n\n

These grants will be made available retrospectively so that communities which have been under Tier-2 restrictions for weeks or months will still benefit for the time they were previously under lockdown.<\/p>\n\n\n\n

Jobs Support Scheme changes<\/em><\/strong><\/p>\n\n\n\n

The Jobs Support Scheme \u00e2\u20ac\u201c the government\u00e2\u20ac\u2122s short-time working scheme first announced in September <\/a>and due to go into effect from November 1  \u00e2\u20ac\u201c will be amended so that employers will have to contribute less to employees\u00e2\u20ac\u2122 wages.<\/p>\n\n\n\n

Originally, the scheme required staff to be working at least 30 per cent of their normal hours to qualify. The government would pay a third of workers\u00e2\u20ac\u2122 wages when they were not in work, while employers would likewise contribute a third to unworked hours, and workers would in turn forgo a third. Employers would be expected to pay 100 per cent of wages for any hours worked as normal.<\/p>\n\n\n\n

The scheme was widely criticised when it was first announced because the steep employer contributions meant that it was far more expensive for businesses to, for example, employ two workers part-time than it was to employ one worker full-time and sack the second worker.<\/p>\n\n\n\n

Now, employers\u00e2\u20ac\u2122 contributions in this scheme will be reduced to just 5 per cent for hours not in work, and the government will cover 62 per cent of wages for unworked hours. Under the new scheme, workers will purportedly take home 73 per cent of their wages. To qualify for the scheme, workers need now only work 20 per cent of their normal hours, instead of 30 per cent, meaning a worker who normally works a full week could work just one day a week and still qualify.<\/p>\n\n\n\n

Sunak also announced greater support for self-employed workers, with the self-employment grant scheme now covering up to 40 per cent of profits instead of 20 per cent. This takes the maximum self-employment grant up to a total of \u00c2\u01413750 instead of \u00c2\u01411875.<\/p>\n\n\n\n

‘Like a long-running TV show’<\/em><\/strong><\/p>\n\n\n\n

While the short-time working scheme has been made more generous, nothing has changed for workers who are under tier-3 restrictions who cannot work because their business is closed. They will still only receive two-thirds of their wages paid for by the state, instead of the 80 per cent paid under the initial furlough scheme.<\/p>\n\n\n\n

\u00e2\u20ac\u015bI\u00e2\u20ac\u2122ve always said that we must be ready to adapt our financial support as the situation evolves, and that is what we are doing today,\u00e2\u20ac\u0165 Sunak said in the Commons. \u00e2\u20ac\u015bThese changes mean that our support will reach many more people and protect many more jobs.<\/p>\n\n\n\n

\u00e2\u20ac\u015bI know that the introduction of further restrictions has left many people worried for themselves, their families and communities. I hope the government\u00e2\u20ac\u2122s stepped-up support can be part of the country pulling together in the coming months.\u00e2\u20ac\u0165<\/p>\n\n\n\n

While many welcomed the more generous levels of support, the government was widely criticised for constantly running to play catch-up, and not offering support when it was needed weeks and months ago, after which thousands of jobs have been lost.<\/p>\n\n\n\n

Responding to Sunak, shadow chancellor Anneliese Dodds told MPs in the Commons, \u00e2\u20ac\u015bHow many jobs have been lost, Mr Speaker, because of that inaction? Over a million have already gone. Last quarter we saw a record rise in redundancies. The chancellor could have done much more if he had acted sooner.\u00e2\u20ac\u0165<\/p>\n\n\n\n

 \u00e2\u20ac\u015bAnd now we see yet another last-minute move. Let me ask the chancellor, what\u00e2\u20ac\u2122s changed? What\u00e2\u20ac\u2122s changed that means this is the right thing to do now but it wasn\u00e2\u20ac\u2122t when parts of the north and Midlands entered tier 2 many weeks ago?\u00e2\u20ac\u0165<\/p>\n\n\n\n

\u00e2\u20ac\u015bThis is becoming like a long-running television show,\u00e2\u20ac\u0165 she added. \u00e2\u20ac\u015bThe winter economy plan, series three. But, you know, the twist is, it didn\u00e2\u20ac\u2122t last the winter, it didn\u00e2\u20ac\u2122t do enough to help the economy and it wasn\u00e2\u20ac\u2122t a plan. We\u00e2\u20ac\u2122ve got to get ahead of this crisis, instead of always running to keep up.\u00e2\u20ac\u0165<\/p>\n\n\n\n

Northern communities<\/em><\/strong><\/p>\n\n\n\n

The government was also criticised for not revealing until now that northern communities which have effectively been under tier-2 restrictions for weeks — and in some cases even months — will receive additional financial support that is backdated to when restrictions first began.<\/p>\n\n\n\n

Greater Manchester mayor Andy Burnham was especially vocal \u00e2\u20ac\u201c noting that he would have come to an agreement with the government on Tuesday (October 20) had he known that support such as business grants were to be applied retrospectively. <\/p>\n\n\n\n

Instead, talks broke down between Burnham and the government after the government refused<\/a> to meet Burnham and other Manchester leaders\u00e2\u20ac\u2122 final offer of a \u00c2\u014165m support package for Greater Manchester.<\/p>\n\n\n\n

Commenting after Sunak\u00e2\u20ac\u2122s economic update, Burnham tweeted, \u00e2\u20ac\u015bHonestly, can barely believe what I\u00e2\u20ac\u2122m reading here. Why on earth was this not put on the table on Tuesday to reach an agreement with us?<\/p>\n\n\n\n

\u00e2\u20ac\u015bI said directly to the PM that a deal was there to be done if it took into account the effects on [Greater Manchester] businesses of three months in Tier 2.\u00e2\u20ac\u0165<\/p>\n\n\n

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Honestly, can barely believe what I\u00e2\u20ac\u2122m reading here. \u0111\u017a\u2018\u2021<\/p>\n

Why on earth was this not put on the table on Tuesday to reach an agreement with us?<\/p>\n

I said directly to the PM that a deal was there to be done if it took into account the effects on GM businesses of three months in Tier 2. https:\/\/t.co\/w2AeeLitGP<\/a><\/p>\n

\u00e2\u20ac\u201d Andy Burnham (@AndyBurnhamGM) October 22, 2020<\/a><\/p><\/blockquote>\n