The Chancellor’s statement unveiling his winter economy plan offered a reality check on living with coronavirus. Despite pressure from the opposition and a handful of Tory MPs to extend the furlough scheme, Rishi Sunak confirmed that it would come to an end in October. In its place, he announced a new jobs support scheme – whereby the government and firms will top up the wages of workers who are unable to return to full time work but are working at least a third of their hours.
This is aimed at making sure businesses with reduced demand keep on their employees. But it’s also an acceptance that jobs in some industries cannot be saved. Those businesses which are unable to operate at all will have little use for the scheme. Sunak holds the belief that there is little point keeping people on furlough for a job that no longer exists. With coronavirus restrictions here for at least another six months, the Chancellor’s statement today made clear that he does not believe there will be any quick bounce back. Instead, we are looking at a reshaping of the economy.
Sunak pleased Tory MPs when he commented of the evolution in his approach ‘our lives can no longer be put on hold’. They saw it as a sign that the Chancellor wants an approach to the virus that finds a balance between keeping the virus rate of infection low and people being able to find enjoyment in their lives.
However, while the measures today won backing from both the head of the TUC and the CBI, they will not be able to prevent mass unemployment. The next few months will test Sunak’s resolve.
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