Results from the British Chamber of Commerce’s Quarterly Recruitment Outlook, in partnership with Totaljobs, reveal the impact Coronavirus has had on the jobs market, with the two organisations calling for further action from government to protect businesses and jobs.
29% of businesses expect to decrease the size of their workforce in the next three months
28% decreased size of workforce in Q2 but 66% kept their workforce constant, reinforcing the success of the Job Retention Scheme
The two organisations call for a cut in employer National Insurance Contributions to protect businesses and jobs.
The leading business organisation’s landmark survey, which serves as a barometer of the UK labour market, received 7,400 responses and is the largest of its kind in the UK.
Fieldwork was done prior to the Chancellor’s Summer Statement which announced the Job Retention Bonus, Kickstart Scheme and an Apprenticeship Recovery programme, among other things.
Redundancies expected
29% of businesses expect to decrease the size of their workforce in the next three months before the government’s Job Retention Scheme ends, the highest on record.59% will keep headcount the same and just 12% will look to increase the size of their workforce.
The news comes as businesses across the UK economy announced significant redundancies. The survey found that over the next three months:
18% of micro firms (with fewer than 10 employees) expect their workforce to decrease.
41% of small and medium firms (with 10 to 249 employees) expect their workforce to decrease.
41% of large firms (with over 250 employees) expect their workforce to decrease.
The survey reinforced data from the BCC’s Quarterly Economic Survey of the challenging environment business communities across the UK are facing, with record falls in key indicators of business activity, including domestic and export sales, cashflow and investment.
Recruitment
The percentage of businesses attempting to recruit in the previous quarter fell to 25%, the lowest level on record. Of the firms that attempted to recruit, 65% faced recruitment difficulties, particularly for skilled manual/technical or managerial roles.
Success of the Job Retention Scheme
While 28% of respondents decreased their workforce in Q2, two in three firms kept staffing levels constant. This reflects data on the success of the Job Retention Scheme, with the BCC’s Business Impacts Tracker indicating that around 70%of businesses had furloughed a portion of their staff.
Beginnings of recovery?
As lockdown lifts, Totaljobs have seen a 30% month-on-month increase in the number of jobs being advertised on their website for June, with the largest volume posted in IT (20k), logistics (12k) and social care (9k).
There were also month on month increases in sectors benefiting from lockdown easing like retail (+51%), travel (+47%) and hospitality (+23%). Skilled trades also started to see growth compared with previous weeks, with jobs advertised increasing by57%.
Unsurprisingly, applications per vacancy were up across all sectors, reflecting continued rises in candidate activity on the Totaljobs site.
Further action needed
The two organisations have called on the government for further action to limit the damage to the UK labour market, including reducing the overall cost of employment, through a temporary cut in employer National Insurance Contributions and support to upskill and reskill employees as businesses adapt to change.
BCC Co-Executive Director Hannah Essex said:“Our research demonstrates the Chancellor’s focus on protecting, supporting and creating jobs is exactly what’s needed to drive the UK’s economic recovery in the coming months.
“Many businesses are suffering from an historic cash crunch and reduced demand, meaning firms will still face tough decisions despite welcome interventions made in the Summer Statement.
“The government should consider additional support for employers before the Autumn Budget to reduce the overall cost of employment and prevent substantial redundancies.Measures could include a temporary cut in employer National Insurance Contributions and support to upskill and reskill employees as businesses adapt to change.”
Totaljobs CEO Jon Wilson said:“The latest figures from the Quarterly Recruitment Outlook make stark reading, especially when compared to what we had grown accustomed to in previous years. It is clear that business confidence is low, with many being forced to make difficult decisions when it comes to their workforce.
“However, the Chancellor’s summer statement outlined a number of measures that will not only support jobs but help create new roles in the economy and give confidence to businesses trying to plan for the future. The interim cuts in stamp duty and VAT should give the hard-hit housing and hospitality sectors a much-needed boost.
“It’s clear that moving forward, adaptability remains paramount for businesses and people, with upskilling, reskilling and utilising transferable skills all key factors during this recovery period.
“To protect jobs and further ease the burden facing businesses, we join the British Chambers of Commerce in their call for a cut in employer National Insurance. We also urge the Chancellor to continue to consider the needs of the sectors and demographics most impacted by Covid-19, to protect people’s livelihoods and help the jobs market and wider economy pick up.”
Commenting on the latest employment figures published today (Thursday), which show around 650,000 fewer paid employees since before the pandemic, TUC General Secretary Frances O’Grady said: “There’s a national disaster unfolding, with vacancies at an all-time low and more jobs lost every day, but ministers are watching from the side-lines, instead of saving jobs with targeted support for the hardest-hit sectors like retail, manufacturing and aviation.
“The more people we have in work, the faster we will work our way out of recession. If the government doesn’t go all out to protect and create jobs, the economic crisis will be longer and harder.
“We can create jobs by fast-tracking infrastructure projects. This would speed up the delivery of faster broadband, more childcare, green technology, modern transport and housing. And it would create over a million jobs across the UK.”
You can view the full QRO report at the link below:
Chancellor of the Exchequer Rishi Sunak’s Summer Statement speech to the House of Commons this afternoon:
Mr Speaker,
I stood here in March saying I knew people were worried. And I know they’re worried still.
We have taken decisive action to protect our economy.
But people are anxious about losing their job, about unemployment rising. We’re not just going to accept this.
People need to know we will do all we can to give everyone the opportunity of good and secure work.
People need to know that although hardship lies ahead, no one will be left without hope.
So, today, we act, with a Plan for Jobs.
Our plan has a clear goal: to protect, support and create jobs.
It will give businesses the confidence to retain and hire.
To create jobs in every part of our country.
To give young people a better start.
To give people everywhere the opportunity of a fresh start.
Where problems emerge, we will confront them.
Where support is justified, we will provide it.
Where challenges arise, we will overcome them.
We entered this crisis unencumbered by dogma and we continue in this spirit, driven always by the simple desire to do what is right.
Mr Speaker,
Before I turn to our Plan for Jobs, let me first outline the nature of the challenge.
Our economic response to coronavirus is moving through three phases.
In the first phase, beginning in March, the government announced social distancing measures and ordered businesses to close, halting the spread of the disease.
We put in place one of the largest and most comprehensive economic responses in the world.
Our £160 billion plan protects people’s jobs, incomes and businesses:
we supported more than 11 million people and jobs through the job retention and self-employment schemes, alongside billions of pounds for the most vulnerable
we supported over a million businesses to protect jobs, through tax cuts, tax deferrals, direct cash grants, and over a million government-backed loans
and we supported public services, with new funding for the NHS, schools, public transport, and local authorities
In total, we have now provided £49 billion to support public services since this crisis began.
Analysis I’m publishing today shows our interventions significantly protected people’s incomes, with the least well off in society supported the most.
And this crisis has highlighted the special bond which holds our country together.
Millions of people in Scotland, Wales and Northern Ireland have been protected by the UK government’s economic interventions – and they will be supported by today’s Plan for Jobs.
No nationalist can ignore the undeniable truth: this help has only been possible because we are a United Kingdom.
Mr Speaker,
Four months on, as we carefully reopen our economy, we are entering the second phase of our economic response.
Despite the extraordinary support we’ve already provided, we face profound economic challenges:
world economic activity has slowed, with the IMF expecting the deepest global recession since records began
household consumption – the biggest component of our economy – has fallen steeply
businesses have stopped trading and stopped hiring
taken together, in just two months our economy contracted by 25% – the same amount it grew in the previous eighteen years.
And the independent Office for Budget Responsibility and Bank of England are both projecting significant job losses – the most urgent challenge we now face.
I want every person in this House and in the country to know that I will never accept unemployment as an unavoidable outcome.
We haven’t done everything we have so far just to step back now and say, ‘job done’. In truth, the job has only just begun.
Mr Speaker,
If the first phase of our economic response was about protection…
…and the second phase – the phase we are addressing today – is about jobs…
…there will come a third phase, where we will rebuild.
My Right Honourable Friend the Prime Minister has set out our vision to level up, unite the country, spread opportunity, and repair and heal the wounds exposed through this crisis.
I can tell the House we will produce a Budget and Spending Review in the autumn.
And, we will deal too, with the challenges facing our public finances.
Over the medium-term, we must, and we will, put our public finances back on a sustainable footing.
In other words, our Plan for Jobs will not be the last action – it is merely the next – in our fight to recover and rebuild after coronavirus.
Mr Speaker, Let me now turn to the detail of our plan for jobs.
Central to our economic response has been the Jobs Retention Scheme.
Furlough has been a lifeline for millions, supporting people and businesses to protect jobs. But it cannot and should not go on forever.
I know that when furlough ends it will be a difficult moment. I’m also sure that if I say the scheme must end in October, critics will say it should end in November. If I say it should end in November, critics will just say December.
But the truth is: calling for endless extensions to the furlough is just as irresponsible as it would have been, back in June, to end the scheme overnight.
We have to be honest.
Leaving the furlough scheme open forever gives people false hope that it will always be possible to return to the jobs they had before.
And the longer people are on furlough, the more likely it is their skills could fade, and they will find it harder to get new opportunities.
It is in no-one’s long term interests for the scheme to continue forever … least of all those trapped in a job that can only exist because of a government subsidy.
So the furlough will wind down, flexibly and gradually, supporting businesses and people through to October.
But while we can’t protect every job, one of the most important things we can do to prevent unemployment is to get as many people as possible from furlough back to their jobs.
So, today, we’re introducing a new policy to reward and incentivise employers who successfully bring furloughed staff back – a new Jobs Retention Bonus.
If you’re an employer and you bring someone back who was furloughed – and you continuously employ them through to January – we will pay you a £1,000 bonus per employee.
It is vital people aren’t just returning for the sake of it – they need to be doing decent work.
So for businesses to get this bonus, the employee must be paid at least £520 on average, in each month from November to January the equivalent of the lower earnings limit in National Insurance.
The House should understand the significance of this policy. We will pay the bonus for all furloughed employees.
So if employers bring back all nine million people who have been furloughed, this would be a £9 billion policy to retain people in work.
Our message to business is clear: if you stand by your workers, we will stand by you.
Mr Speaker, The furlough was the right policy to support people through the first phase of this crisis.
But now, in this new phase, we need to evolve our approach.
Today, I want to set out for the House a new three-point plan for jobs.
We need to:
first – support people to find jobs
second – create jobs
and third – protect jobs
Mr Speaker,
Let me start with supporting jobs, and in particular the help we want to provide for those who will be hardest hit by this crisis: younger people.
Over 700,000 people are leaving education this year.
Many more are just starting out in their careers.
Coronavirus has hit them hard – under 25s are two and a half times as likely to work in a sector that has been closed.
We cannot lose this generation, so today, I am announcing the Kickstart Scheme:
A new programme to give hundreds of thousands of young people, in every region and nation of Britain, the best possible chance of getting on and getting a job.
The Kickstart Scheme will directly pay employers to create new jobs for any 16 to 24-year-old at risk of long-term unemployment.
These will be new jobs – with the funding conditional on the firm proving these jobs are additional.
These will be decent jobs – with a minimum of 25 hours per week paid at least the National Minimum Wage.
And they will be good quality jobs – with employers providing Kickstarters with training and support to find a permanent job.
If employers meet these conditions, we will pay young people’s wages for six months, plus an amount to cover overheads.
That means, for a 24-year-old, the grant will be around £6,500.
Employers can apply to be part of the scheme from next month, with the first Kickstarters in their new jobs this autumn.
And I urge every employer, big or small, national or local, to hire as many Kickstarters as possible.
Today, I’m making available an initial £2 billion; enough to fund hundreds of thousands of jobs.
And I commit today: there will be no cap on the number of places available.
We can do more for young people:
traineeships are a proven scheme to get young people ready for work. We know they work, so for the first time ever we will pay employers £1,000 to take on new trainees, with triple the number of places
to support 18-19-year olds leaving school or college to find work in high-demand sectors like engineering, construction and social care, we’ll provide £100 million to create more places on Level 2 and 3 courses
and the evidence says careers advice works, so we will fund it, with enough new careers advisers to support over a quarter of a million more people.
We will also expand our universal skills offer:
Sector-Based Work Academies provide training, work placements, and a guaranteed job interview in high-demand sectors.
The evidence shows they work, so we will expand them – tripling the number of places.
And we know apprenticeships work, too – 91% of apprentices stay in work or do further training afterwards.
So for the next six months, we’re going to pay employers to create new apprenticeships.
We will pay businesses to hire young apprentices, with a new payment of £2,000 per apprentice.
And we will introduce a brand-new bonus for businesses to hire apprentices aged 25 and over, with a payment of £1,500.
And let me thank my Right Honourable Friend the Education Secretary for his support and commitment in developing these measures.
Mr Speaker,
We know the longer someone is out of work, the harder it is to return. Millions of people are moving onto Universal Credit – they need urgent support to get back to work.
So, we are:
doubling the number of Work Coaches in Job Centres
increasing the Flexible Support Fund
extending the Rapid Response Service
expanding the Work and Health Programme
and developing a new scheme to support the long-term unemployed
The academic and economic evidence tells us these are among the most effective things we can do.
So I’m investing an extra billion pounds in DWP, to support millions of people back to work.
And I’m grateful for everything my Right Honourable Friend the Work and Pensions secretary, and her incredible team, have done.
£1 billion of support for the unemployed; more money for skills, traineeships, and apprenticeships; and a new, good quality job for hundreds of thousands of new Kickstarters – the first part of our plan for jobs.
Mr Speaker,
The second part of our plan is to support job creation.
That begins with historic investment in infrastructure – creating jobs in every region and nation of the UK.
At Budget, I announced £88 billion of capital funding this year; and last week the Prime Minister announced our plans to accelerate £5 billion of additional investment projects.
We are doubling down on our ambition to level up…
…with better roads, better schools, better hospitals, better high streets, creating jobs in all four corners of our country.
Mr Speaker, As well as investing in infrastructure, we want to create green jobs.
This is going to be a green recovery with concern for our environment at its heart.
As part of that, I’m announcing today a new, £2 billion Green Homes Grant.
From September, homeowners and landlords will be able to apply for vouchers to make their homes more energy efficient and create local jobs.
The grants will cover at least two thirds of the cost, up to £5,000 per household.
And for low income households, we’ll go even further with vouchers covering the full cost – up to £10,000.
On top of the £2 billion voucher scheme, I am releasing £1 billion of funding to improve the energy efficiency of public sector buildings…
…alongside a £50 million fund to pilot the right approach to decarbonise social housing.
Taken together, we expect these measures to:
make over 650,000 homes more energy efficient
save households up to £300 a year on their bills
cut carbon by more than half a mega tonne per year, equivalent to taking 270,000 cars off the road
and, most importantly right now, support around 140,000 green jobs
A £3 billion green jobs plan to save money; cut carbon; and create jobs.
Mr Speaker, One of the most important sectors for job creation is housing.
The construction sector adds £39 billion a year to the UK economy;
House building alone supports nearly three quarter of a million jobs;
With millions more relying on the availability of housing to find work.
But property transactions fell by 50% in May.
House prices have fallen for the first time in eight years.
And uncertainty abounds in the market – a market we need to be thriving.
We need people feeling confident – confident to buy, sell, renovate, move and improve.
That will drive growth. That will create jobs.
So to catalyse the housing market and boost confidence, I have decided today to cut stamp duty.
Right now, there is no stamp duty on transactions below £125,000.
Today, I am increasing the threshold to half a million pounds.
This will be a temporary cut running until 31st March next year.
And, as is always the case, these changes to stamp duty will take effect immediately.
The average stamp duty bill will fall by £4,500.
And nearly nine out of ten people buying a main home this year, will pay no stamp duty at all.
Stamp duty cuts; A £5,000 Green Homes Grant; And tens of billions of pounds of new capital projects.
We are creating jobs, the second part of our Plan for Jobs.
Mr Speaker, The final part of our plan will protect jobs that already exist by helping some of our highest-employing but hardest-hit sectors: hospitality and tourism.
Our economy relies on consumption, especially social consumption:
The pubs, cafes, restaurants, hotels and B&Bs that bring life to our villages, towns and cities.
Taken together these sectors employ over 2 million people disproportionately younger, women and people from Black, Asian and minority ethnic communities.
And many rural and coastal communities rely on these industries.
80% of hospitality firms temporarily stopped trading in April and 1.4 million workers have been furloughed, the highest proportions of any sector.
So the best jobs programme we can do is to restart these sectors and get our pubs, restaurants, cafés and B&Bs bustling again.
I know people are cautious about going out.
But we wouldn’t have lifted the restrictions if we didn’t think we could do so safely.
And I’ve seen in the last few weeks how hard businesses are working to make their premises safe.
And if we follow the guidance, and respect what they ask us to do, we can all enjoy summer safely.
In turn, we need to give these businesses the confidence to know that if they open up, invest in making their premises safe, and protect jobs, demand will be there, and be there quickly.
So today, I’m announcing two new measures to get these sectors moving and protect jobs.
First, at the moment, VAT on hospitality and tourism is charged at 20%.
So I’ve decided, for the next six months, to cut VAT on food, accommodation and attractions.
Eat-in or hot takeaway food from restaurants, cafes and pubs;
Accommodation in hotels, B&Bs, campsites and caravan sites;
Attractions like cinemas, theme parks and zoos;
All these and more will see VAT reduced from next Wednesday until January 12th, from 20% to 5%.
This is a £4 billion catalyst for the hospitality and tourism sectors, benefiting over 150,000 businesses, and consumers everywhere – all helping to protect 2.4 million jobs.
But, Mr Speaker, we will go further. The final measure I’m announcing today has never been tried in the UK before. This moment is unique. We need to be creative.
So, to get customers back into restaurants, cafes and pubs, and protect the 1.8 million people who work in them, I can announce today that, for the month of August, we will give everyone in the country an Eat Out to Help Out discount.
Meals eaten at any participating business, Monday to Wednesday, will be 50% off, up to a maximum discount of £10 per head for everyone, including children.
Businesses will need to register, and can do so through a simple website, open next Monday.
Each week in August, businesses can then claim the money back, with the funds in their bank account within 5 working days.
1.8 million people work in this industry. They need our support and with this measure we can all eat out to help out.
A VAT cut to 5%;
And a first-of-its-kind government-backed discount for all;
That’s the third part of our Plan for Jobs.
So, Mr Speaker,
A £1,000 Jobs Retention Bonus.
New, high quality jobs for hundreds of thousands of young Kickstarters.
£1bn to double the number of work coaches and support the unemployed.
More apprenticeships; more traineeships; more skills funding.
Billions of pounds for new, job creation projects around the country.
A £3 billion plan to support 140,000 green jobs.
And in this vital period, as we get going again:
VAT cut.
Stamp duty cut.
Meals out cut.
Mr Speaker, all part of our Plan for Jobs worth up to £30 billion.
Mr Speaker,
Governments, much less people, rarely get to choose the moments that define them. What choice there is comes in how we respond.
For me, this has never just been a question of economics, but of values:
I believe in the nobility of work.
I believe in the inspiring power of opportunity.
I believe in the British people’s fortitude and endurance.
And it is that value, endurance, more than any other, we need to embody now.
A patience to live with the uncertainty of the moment…
…to find that new balance between safety and normality.
We will not be defined by this crisis, but by our response to it.
It is an unambiguous choice to make this moment meaningful for our country in a way that transcends the frustration and loss of recent months.
It is a plan to turn our national recovery into millions of stories of personal renewal.
Mr Speaker, it is our Plan for Jobs and I commend it to this House.
Anneliese Dodds MP, Labour’s Shadow Chancellor, responding to the Government’s ‘Plan for Jobs’, said:“Labour has repeatedly called on the government to match the ambitions of Labour’s Future Jobs Fund, to rise to the youth unemployment challenge.
“To the extent that the ‘Kickstart’ programme is based on the Future Jobs Fund model, it should help many young people to access work.
“However, the Government are yet to rise to the scale of the unemployment crisis. The urgent priority right now is to prevent additional unnecessary unemployment in the first place by abandoning the Government’s ‘one-size-fits-all’ approach to the removal of the Job Retention and Self-Employed schemes.
“In addition, older people who become unemployed, and those living in particularly hard-hit areas, will also need tailored support.
“Government also urgently needs to get test, track and isolate right, as ultimately the biggest drag on our economy has been the slow public health response, which threatens additional localised lockdowns and which has reduced consumer confidence.”
Responding the UK Chancellor’s Summer Statement today, Finance Secretary Kate Forbes said: “We called for an £80bn stimulus package to build a strong, green and inclusive economic recovery and while there are elements in this announcement to be welcomed, in particular the measures on VAT for tourism and hospitality, overall this package is a huge opportunity missed. It falls well short of delivering what is needed to boost the economy and protect jobs.
“There is no new capital spend, no extension to the furlough scheme for hard-hit sectors and no further support for households in financial difficulty. A half price meal out does not help those struggling to put food on the table.
“Many of the initiatives are short-lived and do not provide long term certainty for business or households. Instead they will simply push the problems back to the end of the year when we will also have to deal with the end of the transition period with the EU.
“Despite announcing new funding measures worth up to £30bn today, most of it bypasses devolution and does not provide the Scottish Government with the funding we need to enable us to tailor an economic response that meets Scotland’s needs.
“Like all governments, we are facing huge spending pressures but we do not have the tools that others have to meet them. Along with the Governments of Wales and Northern Ireland, we set out a reasonable, proportionate set of new financial powers that would enable the Scottish Government to respond effectively. Regrettably, the UK Government has turned a deaf ear to those needs.”
Also responding to measures announced today by the chancellor in his summer statement, TUC General Secretary Frances O’Grady said: “Mass unemployment is now the biggest threat facing the UK, as shown by the thousands of job losses at British Airways, Airbus and elsewhere.
“The government must do far more to stem the rising tide of redundancies. We can’t afford to lose any more good skilled jobs.
“The chancellor should have announced targeted support for the hardest-hit sectors like manufacturing and aviation. Struggling businesses will need more than a one-off job retention bonus to survive and save jobs in the long-term.
“Unions campaigned for a job guarantee scheme. Kickstart is a good first step. But if the government allows vital industries to go the wall, unemployment will surge and the recession will last far longer.
“The more people we have in decent work, the faster we can work our way out of recession. We must create jobs through more new public investment in new homes, childcare, faster broadband, better transport and green tech.
“The government should have announced extra investment in jobs across all public services – starting with filling the 200,000 vacancies in the NHS and social care. And if the chancellor wants people to have the confidence to eat out, he should have announced a pay rise for hard-pressed key workers rather than dining out discounts for the well-off.”
On sick pay, Frances added: “The government missed an opportunity to strengthen their faltering Test and Trace programme.
“Statutory sick pay is too low for anyone to live on. It’s not viable to ask people to self-isolate if they will be pushed into financial hardship.
“We had hoped ministers would listen, raise the rate and change the rules so low-paid people could afford to do the right thing and comply with self-isolation. Once again, this government fails to understand the real lives of low-paid workers. It is clear that poverty wages and insecure contracts are a public health hazard.”
Joint statement from the head of the TUC and the UNISON, Unite, GMB and USDAW unions warns of “very short window” to save hundreds of thousands of jobs
Unions call for urgent action on furlough, infrastructure, public services and youth unemployment
The event will now be live streamed on Facebook and Youtube with attendees also able to join in with the many festival activities throughout the weekend. The annual trade union festival normally held in Tolpuddle, Dorset will still run from Friday 17th – Sunday 19th July.
This year’s Tolpuddle Martyrs’ Festival has been moved exclusively online, organisers have confirmed today.
The South West TUC is making the virtual event as similar as possible to the original, complete with debates, films, comedy, music, a kids’ area, and a virtual procession on the Sunday afternoon.
The event, held in Dorset every July to commemorate the six farm workers transported to Australia after forming a union, was cancelled because of the coronavirus crisis.
The virtual festival, held on the same days as the original (July 17, 18 and 19) will be live-streamed across various digital platforms. For exclusives and teasers in the run-up to the festival, organisers are inviting attendees to join the Tolpuddle Martyrs Festival Facebook group.
Tolpuddle [is] more than simply music and politics. It’s a gathering of like-minded people and a joyous celebration of trade union solidarity.
Festival organiser and Regional Secretary of the TUC South West Nigel Costley said: “Tolpuddle has always been more than simply music and politics. It’s a gathering of like-minded people, a joyous celebration of trade union solidarity – and that’s what we’re hoping to reflect online.
“We have a full programme of topical debates, a full programme of films and a full programme of music ranging from those who would have played this year’s event to those who we welcome back from previous festivals – all performing exclusive sets for us.
“We’ll also be covering the wreath-laying, interviewing stall-holders and encouraging families to design banners so they can join the virtual procession on Sunday afternoon.
“The whole event will be compered by familiar faces from the festival to add that special Tolpuddle touch.”
Keep an eye on the Facebook page for announcements of speakers and artists.
“We have some special surprises in store,” said Nigel Costley.
UK is on the brink of a surge in youth unemployment, warns TUC
Government must introduce a job guarantee scheme to prevent the misery of long-term unemployment
New analysis published today by the TUC shows that young workers (aged 25 and under) face the highest risk of unemployment due to the coronavirus crisis.
The analysis compares unemployment risk related to the coronavirus crisis across industrial sectors. And it looks at the age profile of workers in sectors with highest risk.
Sectors at highest risk
Workers in all sectors of the economy face unemployment risks due to the coronavirus crisis and the recession that is expected to follow.
However, two sectors are at much higher risk of losing jobs compared to others: ‘accommodation and food’ and ‘arts, entertainment and recreation’.
Our analysis uses three measures to assess risk: (1) the rate of furloughed workers, (2) the proportion of businesses that have paused or cancelled trading, and (3) the proportion of businesses with turnover falling more than 50%.
These two sectors not only rate the highest for all three measures, they are also in a league of their own, with rates far exceeding the construction sector in third place.
Sector
Workforce furloughed
Businesses pausing trading
Businesses with turnover falling more than 50%
Accommodation and food
83%
74%
62%
Arts, entertainment and recreation
73%
75%
63%
Construction industries
41%
19%
40%
Average for all industries
28%
18%
26%
NB – this table shows selected data from the analysis. For a full table covering all sectors, see the research note.
Young workers
The analysis suggests that, without urgent action, the UK may be on the brink of a surge in youth unemployment.
Of 4,352,000 UK workers aged 25 and under, 890,000 work in either accommodation and food, or arts, entertainment and recreation.
It means that 20% of workers aged 25 and under work in these two sectors, compared to 6% for workers older than 25.
Workers aged 25 and under are therefore three times more likely to work in one of the two sectors where jobs are at greatest risk.
Women workers aged 2 5 and under face the greatest risk of all. They are six times more likely than male workers over 25 to work in the highest risk sector, accommodation and food.
In addition to lay-offs, recessions make it harder for young people seeking to enter the labour market for the first time, as employers hire less. This part explains why youth unemployment tends to be much higher than for other workers following a recession.
UK job vacancies have already fallen 25% compared to this time last year. And the sector with the biggest fall is accommodation and food (42%).
Job guarantee scheme
Research shows that prolonged unemployment when young has negative impacts on later working life. This includes a greater likelihood of further periods of unemployment and work with lower pay.
The TUC is calling for a job guarantee scheme to stop those without work becoming long-term unemployed, with early access to the scheme for young workers.
It would resemble the future jobs fund, which was part of the national recovery plan following the recession in 2008 caused by the private banking crisis. A government evaluation found that, two years after starting the programme, participants were 27% more likely to be in unsubsidised work.
Key features of the TUC’s proposed jobs guarantee scheme:
Supports additional jobs that would not otherwise be created by employers
Enables work that benefits the UK, such as helping to decarbonise the economy
Offers secure contracts of at least six months
Pays at least the real living wage
Gives training opportunities to help people move into longer-term work
Provides guaranteed access to trade union representation
Alongside the job guarantee scheme, the TUC says that government must work with businesses and unions to protect as many jobs as possible. This should include extending the job retention scheme for employers who cannot easily adapt to social distancing.
And ministers should form a national recovery council alongside unions and employers, to design and deliver a recovery plan that protects and creates decent jobs.
TUC General Secretary Frances O’Grady said: “We know it’s a tough road ahead. But the more people there are in work, the faster we can work our way out of recession.
“Our national recovery plan must be centred on jobs – both protecting those we have and creating more. We need more good jobs in social care, in the green tech that our future depends on, in UK start-ups and in a revitalised manufacturing sector.
“Some industries may need help for longer through the job retention scheme so they can retain staff while they adapt to new safety standards.
“And for those who lose their jobs, the government must set up a job guarantee scheme. Young people in particular can’t be left to the misery of long-term unemployment. And it’s the best value option for the treasury.
“Making sure everyone has a decent job on a fair wage is how to recover faster and build back better.”
Coronavirus has confirmed that working women are still underpaid and undervalued in Britain today, the TUC has said today as the UK marks the 50th anniversary of the Equal Pay Act.
TUC analysis shows that women are much more likely than men to be key workers and, when they are, are much more likely to be on low pay.
Of an estimated 9.8 million key workers, nearly two-thirds are women. And 2.6 million women key workers earn less than £10 an hour.
TUC General Frances O’Grady said: “50 years after brave women won the legal right to equal pay, coronavirus has confirmed that pay inequality is still rife in Britain today.
“Working women have led the fight against coronavirus, but millions of them are stuck in low paid and insecure jobs. That is not right.
“As we emerge from this crisis, we need a reckoning on how we value and reward women’s work. Without proper change it will take decades to close the gender pay gap.”
Separate TUC analysis of official data shows that at current rates of progress it will take around 50 years (until 2067) to achieve pay parity between men and women.
– Estimates of key worker earnings are based on the government’s list of key occupations and data from the most recent Labour Force Survey (Q4, 2019).
The TUC’s analysis suggests there are up to 9.8 million key workers, and that 3.7 million are paid below £10 per hour. This is based on linking four-digit occupation codes to government guidance, which is open to interpretation.
Employees
Number of employees earning less than £10 per hour
The TUC has set out how the UK can recover from the coronavirus economic crisis, stop the despair of mass unemployment and set working families on a path to prosperity.
Alongside the report, the TUC publishes analysis showing that the fastest recoveries from economic crises in UK history were based on investment for growth, not cuts to services, deregulation and tax breaks for millionaires and bosses.
75 years on from VE Day, the UK should emulate the post-war recovery
TUC analysis shows that the decade of investment for growth (1947-57) that followed World WarTwo achieved an average growth rate of 3.3% But the decade of cuts (2009-19) that followed the bankers’ crisis achieved average growth of just 1.9%.
These examples are part of a wider pattern for the UK’s responses to economic crises over the last century. The UK recovers better and faster when the approach is investment for growth, prioritising workers’ wages, strong public services, a decent safety net and building the capacity of both private and public sectors.
Approaches based on cuts to spending only serve to hold back the whole economy. This can be seen not only during 2009-2019, but also during 1921-31, when severe cuts meant growth averaged just1.9%.
In both 1921-1931 and 2009-2019, slow growth led to higher national debt. By contrast, periods of recovery based on investment for growth have reduced national debt, because they are successful at generating broad growth and making the country wealthier.
A plan to get Britain growing out of the crisis – and stop mass unemployment
The pandemic alone did not cause this economic crisis. It was made worse by a decade of austerity and failure to strengthen the UK’s economy. Choosing the wrong approach to recovery now risks embedding low growth, long-term unemployment and all the social ills that go alongside.
An investment for growth approach means taking action on six key areas:
Decent work and a new way of doing business: New business models based on fairer employment relationships. A fairer share for workers of the wealth they create, with a higher minimum wage and new collective bargaining rights.
Sustainable industry: Economic stimulus for a just transition to net zero carbon. Rebuilding the UK’s industrial capacity with modern tech and training in new skills.
A real safety net: Reforms to social security to provide help faster and prevent poverty. A job guarantee scheme so everyone can work and long-term unemployment does not take hold.
Rebuilding public services: Bringing our public services back to full strength, with decent pay for those who looked after us in the crisis, and a new focus on good jobs and direct employment in social care.
Equality at work: Specific actions to make sure women, disabled people and BME groups do not suffer disproportionately from the impact of the coronavirus recession.
International solidarity: New international rules must prioritise decent jobs and public services for all.
The evidence from the post-war recovery is that this investment for growth recovery plan can pay for itself. Millions of working families with higher disposable income create the economic demand needed for strong growth and healthy public finances. Stronger public services and an effective safety net will support people to start and grow businesses, and will better protect against a future pandemic.
TUC General Secretary Frances O’Grady said: “The UK’s weak economy and ten years of cuts left our country unprepared for coronavirus. Only the dedication of millions of individual workers kept our country going.
“Let’s learn the lesson. Together, we can work our way safely out of this recession. Let’s make sure everyone has a decent job, with fair pay and security for their family. Let’s thank our key workers with the pay rise they have earned. And let’s not consign millions of our fellow citizens to the despair of unemployment.
“Today the TUC publishes our plan for recovery. At its heart is good jobs. Jobs in a reborn UK manufacturing sector. Jobs in a social care sector finally getting some respect. Jobs in the green tech of the future. Let’s rebuild our country through hard work, determination and investment in all our futures – not cuts to spending, deregulation and tax breaks for millionaires and bosses.”
She added: “Seventy-five years ago, Britain was bloodied, battered – and broke. Yet after the war Britain’s economy grew faster than ever before. We did it not by pay freezes and cuts, but making the priority decent jobs for everyone, new homes, infrastructure and a new national health service.
“So let’s channel the spirit of 1945. Coronavirus doesn’t have to equal mass unemployment and a poorer, meaner country. We can do what the post-war generation did: grow our way out of this crisis and build a better life for everyone.”
Guidance launched to help get Brits ENGLAND safely back to work
The UK Government has published guidance for employers in England to help them get their businesses back up and running and workplaces operating safely – but the TUC says the plans won’t make workplaces safe.
For the timebeing Scotland, Wales and Northern Ireland are sticking to their ‘stay at home’ message.
Practical guidelines published to make workplaces as safe as possible and give people confidence to go back to work during coronavirus pandemic
documents developed in consultation with approximately 250 businesses, unions, industry leaders as well as devolved administrations
up to an extra £14 million made available for the Health and Safety Executive (HSE) for extra call centre employees, inspectors and equipment
guidance provides employers with a downloadable notice businesses should display to show people they have followed the guidance
New ‘COVID-19 secure’ guidelines are available to employers to help them get their businesses back up and running and workplaces operating as safely as possible.
This follows the Prime Minister setting out steps to beat the virus and restart the economy, so we can protect jobs, restore people’s livelihoods and fund the country’s vital public services.
The government has consulted approximately 250 stakeholders in preparing the guidance. It has been developed with input from firms, unions, industry bodies and the devolved administrations in Northern Ireland, Scotland and Wales and in consultation with Public Health England (PHE) and the Health and Safety Executive (HSE), to develop best practice on the safest ways of working across the economy, providing people with the confidence they need to return to work.
The new guidance covers 8 workplace settings which are allowed to be open, from outdoor environments and construction sites to factories and takeaways. This sets out practical steps for businesses focused on 5 key points, which should be implemented as soon as it is practical:
1. Work from home, if you can
All reasonable steps should be taken by employers to help people work from home. But for those who cannot work from home and whose workplace has not been told to close, our message is clear: you should go to work. Staff should speak to their employer about when their workplace will open.
2. Carry out a COVID-19 risk assessment, in consultation with workers or trade unions
This guidance operates within current health and safety employment and equalities legislation and employers will need to carry out COVID-19 risk assessments in consultation with their workers or trade unions, to establish what guidelines to put in place. If possible, employers should publish the results of their risk assessments on their website and we expect all businesses with over 50 employees to do so.
3. Maintain 2 metres social distancing, wherever possible
Employers should re-design workspaces to maintain 2 metre distances between people by staggering start times, creating one way walk-throughs, opening more entrances and exits, or changing seating layouts in break rooms.
4. Where people cannot be 2 metres apart, manage transmission risk
Employers should look into putting barriers in shared spaces, creating workplace shift patterns or fixed teams minimising the number of people in contact with one another, or ensuring colleagues are facing away from each other.
5. Reinforcing cleaning processes
Workplaces should be cleaned more frequently, paying close attention to high-contact objects like door handles and keyboards. Employers should provide handwashing facilities or hand sanitisers at entry and exit points.
A downloadable notice is included in the documents, which employers should display in their workplaces to show their employees, customers and other visitors to their workplace, that they have followed this guidance.
Business Secretary Alok Sharma said: “This guidance provides a framework to get the UK back to work in a way that is safe for everyone.
“These are practical steps to enable employers to identify risks that COVID-19 creates and to take pragmatic measures to mitigate them.
“And as we are able to reopen new sectors of the economy, we will continue our collaborative approach working with a wide range of stakeholders, to provide guidance for additional workplaces.”
Sarah Albon, Chief Executive of the Health and Safety Executive, said: “The BEIS guidance issued today sets out practical steps employers can take to enable staff to continue and return to work.
“We have worked with BEIS to ensure businesses have access to the information they need to put in place measures to help them work safely. This will assist employers in carrying out risk assessments and putting practical measures in place.
“At the heart of the return to work is controlling the risk posed by the virus. Ensuring safe working practices are in place will help deliver a safe return to work and support businesses across the country.”
Craig Beaumont, Director of External Affairs and Advocacy at the Federation of Small Businesses commented: “FSB has engaged through this process with the Department for Business, Energy & Industrial Strategy and we appreciate that our points have been taken on board for the UK small business community.
“Today’s guidance is practical, workable and proportionate for small businesses.
“It will be a long journey but this guidance will provide the basis for small employers to have the positive conversations needed with their staff. This is the first step to getting the economy back on its feet.”
Carolyn Fairbairn, Director-General of the CBI, commented: “Safety is at the heart of business thinking. Unless people feel safe, employees won’t return, customers will stay away and the restart will falter, harming livelihoods and public services.
“This guidance will help. It gives firms a clearer picture of how to reopen safely and gradually.
“The guidance builds on the good proactive plans many firms have developed during lockdown. Excellent employee engagement, fast workplace innovation and transparency have helped many companies support livelihoods. It’s right to build on this.
“The UK faces months of change and challenge. These guidelines will need to continue to evolve based on insight from the ground.
“And employers, employee representatives and relevant enforcement agencies must work together, supporting these plans to build public trust and get our economy back on its feet.”
Jonathan Geldart, Director General of the Institute of Directors. commented: “This guidance is an important first step. It won’t provide every answer, no guidance can, but directors can use it to inform their risk assessments for operating in this pandemic.
“Ultimately, the decision lies with a company’s directors, and they need to feel comfortable they can operate safely. Decisions on re-opening will not be taken lightly. Business leaders want to stand on their own two feet, but most can’t operate at anything like normal capacity at the moment, and making adjustments to protect staff and customers will be a big challenge for many workplaces.
“We hope and expect the guidance to evolve over time, but this is a place for employers to start on the long path to getting the economy going again.”
The guidance applies to businesses currently open. This also includes guidance for shops which we believe may be in a position to begin a phased reopening at the earliest from the 1 June.
Guidance for other sectors that are not currently open will be developed and published ahead of those establishments opening to give those businesses time to plan.
The UK government will also shortly set up taskforces to work with these sectors to develop safe ways for them to open at the earliest point at which it is safe to do so, as well as pilot re-openings to test businesses’ ability to adopt the guidelines.
As part of Monday’s announcement, the government has made available up to an extra £14 million for the HSE, equivalent to an increase of 10% of their budget, for extra call centre employees, inspectors and equipment if needed.
REMEMBER – this guidance is for ENGLAND ONLY
Government guidance on returning to work is a step in the right direction, but more must be done to ensure employers manage safe working properly, says the TUC’s Antonia Bance:
On Sunday night, 10 May 2020, the prime minister encouraged workers to start returning to work.
Although he meant workers who can’t work from home in industries that haven’t been closed, his words took unions and employers by surprise.
And they created real confusion and anxiety overnight, as workers wondered if they had to report for work in the morning.
Unions want to support a safe return to work. That’s how we will get on with rebuilding Britain.
We don’t take a view on the speed of the return to work – we’re not scientists. What we are expert in is how to keep working people safe at work.
The UK needs a safe and managed return to normal working. That means consulting properly with unions and employers on guidance, getting it out to firms, giving them time to implement it, making sure the right PPE is available, ensuring that our transport systems and schools are safe, and then announcing dates when people could safely return to work.
This process must be gradual, and it must be safe – but that’s not what has happened.
Why workplace safety matters
This stuff really matters, because the impact of this government’s failures on workplace safety has already been horrific.
According to TUC analysis of new figures released by the ONS this week, a male security worker is four times more likely to die of Covid-19 than the male average. A female hairdresser is over three times as likely to die than the female average.
The government has to take a tough new approach to keeping people safe at work to protect as many lives as possible.
Late last month, the business department consulted unions and employers on detailed back-to-work guidelines.
The first draft was poor – it misrepresented the existing law, left out key protections for vulnerable groups, and there was a blank space where the section on PPE should have been.
Fast forward to yesterday. After 24 hours of chaos and concern over the PM’s premature announcement and news that low-paid workers were disproportionately dying from coronavirus, the business department finally published their detailed guidelines.
And though they aren’t everything unions wanted, they are a step in the right direction.
We demanded more money for the Health and Safety Executive – and £14m has been allocated.
We raised real concerns about the language and tone of the guidance – and are glad to see it is now tougher, reminding employers of their responsibilities and not just asking them to “consider” taking action.
Social distancing has been reinstated as the key risk control measure, with only very few exceptions. And vulnerable workers will get the extra protection they need.
But the new detailed guidance still falls short. Covid-19 will pose a risk for months to come, so it’s vital that employers manage safe working properly.
Unions will keep up the pressure on government to improve the rules as more and more people go back to work.
What still needs to change?
First, there must be a legal requirement for employers to publish their risk assessment.
Everyone needs to be able to see what a firm is doing to keep their workers – and their customers and the wider community – safe. This works well for gender pay gap reporting, and it’s a great resource for proactive enforcement.
We need the government to get to grips with the PPE crisis. The priority is workers in health and social care but other workers may need forms of PPE too, depending on the risk assessment in their workplaces.
Getting the right rules is only half the battle
Now it’s for employers to comply with the new, transparent, risk assessment regime. They need to consult their unions and workforces and get union agreement to the actions they are taking to keep workers safe.
The UK’s 100,000 health and safety reps – experts in workplace hazards – are ready to make sure every employer complies, including providing advice and guidance in non-unionised workplaces.
And when employers get it wrong, we need strong and swift enforcement
The Health and Safety Executive got £14m extra funding yesterday. Unions want to make sure it’s used to proactively get out to the riskiest workplaces and crack down on rogue employers.
Both inspections and prosecutions have fallen by more than 80 per cent since 2001. The HSE must have the capacity to inspect and challenge every employer that breaks the rules, and prosecute those who neglect worker safety.
And it must be matched by local authority enforcement teams getting out to make sure shops and warehouses are safe.
Questions remain
We still have big questions about how we manage public transport safely – for passengers and transport workers.
The government’s rushed plans to reopen schools are deeply worrying for staff and parents alike. And we know that without childcare, going back to workplaces will be impossible for many.
Working people are rightly worried about how to protect themselves and their loved ones. We need a gradual, safe return to workplaces. That’s how to build public confidence – and get the economy moving again.
The government’s Coronavirus Job Retention Scheme will remain open until the end of October, the Chancellor announced today.
Coronavirus Job Retention Scheme will continue until end of October
furloughed workers across UK will continue to receive 80% of their current salary, up to £2,500
new flexibility will be introduced from August to get employees back to work and boost economy
In a boost to millions of jobs and businesses, Rishi Sunak said the furlough scheme would be extended by a further four months with workers continuing to receive 80% of their current salary.
As we reopen the economy (at least in England – Ed.), we need to support people to get back to work. From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff.
The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.
Chancellor Rishi Sunak said: “Our Coronavirus Job Retention Scheme has protected millions of jobs and businesses across the UK during the outbreak – and I’ve been clear that I want to avoid a cliff edge and get people back to work in a measured way.
“This extension and the changes we are making to the scheme will give flexibility to businesses while protecting the livelihoods of the British people and our future economic prospects.”
New statistics published today revealed the job retention scheme has protected 7.5 million workers and almost 1 million businesses.
The scheme will continue in its current form until the end of July and the changes to allow more flexibility will come in from the start of August. More specific details and information around its implementation will be made available by the end of this month.
The government will explore ways through which furloughed workers who wish to do additional training or learn new skills are supported during this period. It will also continue to work closely with the Devolved Administrations to ensure the scheme supports people across the Union.
The Chancellor’s decision to extend the scheme, which will continue to apply across all regions and sectors in the UK economy, comes after the government outlined its plan for the next phase of its response to the coronavirus outbreak.
The scheme is just one part of the government’s world-leading economic response to coronavirus, including an unprecedented package for the self-employed, loans and guarantees that have so far provided billions of pounds in support, tax deferrals and grants for small businesses.
Today the UK government is also publishing new statistics that show businesses have benefitted from over £14 billion in loans and guarantees to support their cashflow during the crisis.
This includes 268,000 Bounce Back Loans worth £8.3 billion, 36,000 loans worth over £6 billion through the Coronavirus Business Interruption Loan Scheme, and £359 million through the Coronavirus Large Business Interruption Loan Scheme.
Mike Cherry, National Chairman of the Federation of Small Businesses, said: “The Job Retention Scheme is a lifeline which has been hugely beneficial in helping small employers keep their staff in work, and it’s extension is welcome.
“Small employers have told us that part-time furloughing will help them recover from this crisis and it is welcome that new flexibility is announced today.
BCC Director General Adam Marshall said: “The extension of the Job Retention Scheme will come as a huge help and a huge relief for businesses across the UK.
“The Chancellor is once again listening to what we’ve been saying, and the changes planned will help businesses bring their people back to work through the introduction of a part-time furlough scheme. We will engage with the Treasury and HMRC on the detail to ensure that this gives companies the flexibility they need to reopen safely.
“Over the coming months, the government should continue to listen to business and evolve the scheme in line with what’s happening on the ground. Further support may yet be needed for companies who are unable to operate for an extended period, or those who face reduced capacity or demand due to ongoing restrictions.”
Dame Carolyn Fairbairn, CBI Director-General, said: “The Chancellor is confronting a challenging balancing act deftly. As economic activity slowly speeds up, it’s essential that support schemes adapt in parallel.
“Extending the furlough to avoid a June cliff-edge continues the significant efforts made already and will protect millions of jobs.
“Introducing much needed flexibility is extremely welcome. It will prepare the ground for firms that are reawakening, while helping those who remain in hibernation. That’s essential as the UK economy revives step-by-step, while supporting livelihoods.
“Firms will, of course, want more detail on how they will contribute to the scheme in the future and will work with government to get this right.
“Above all, the path of the virus is unpredictable, and much change still lies ahead. The government must continue to keep a watchful eye on those industries and employees that remain at risk. All schemes will need to be kept under review to help minimise impacts on people’s livelihoods and keep businesses thriving.
“The greater the number of good businesses saved now, the easier it will be for the economy to recover.”
Commenting on the extension of the government’s job extension scheme today, TUC General Secretary Frances O’Grady said: “We are pleased ministers have listened to unions and extended the job retention scheme to the autumn. This will be a big relief for millions.
“Changing the rules to allow part-time working is key to enabling a gradual and safe return to work. And maintaining the rate at 80% is a win for the pay packets of working families.
“As the economic consequences of Covid-19 become clear, unions will keep pushing for a job guarantee scheme to make sure everyone has a decent job.”
Anneliese Dodds MP, Labour’s Shadow Chancellor, said: “The furlough scheme is a lifeline for millions. The Government was right not to pull it away.
“It is welcome that the Chancellor has heeded the call by Labour, trade unions, and businesses for more flexibility in the scheme, to support employees to go back to work part-time.
“The government must clarify today when employers will be required to start making contributions, and how much they’ll be asked to pay. If every business is suddenly required to make a substantial contribution from the 1st August onwards, there is a very real risk that we will see mass redundancies.”
Extension to Furlough Scheme could cost the Government £70 billion
The Chancellor has extended the current Furlough scheme until the end of October but he now has a huge challenge to get this right, say leading tax and advisory firm Blick Rothenberg.
Heather Self a partner at the firm said: “He needs to achieve a “Goldilocks” effect – not too hot, and not too cold. If he provides too much it will be very expensive and may discourage firms from reopening. If he provides too little thousands of people could lose their jobs.
She added: “It is going to be a turbulent time for the labour market in the Autumn. Some sectors, such as the hospitality and tourism sector, are likely to see significant redundancies, while others such as construction and financial services will be relieved to see a gradual winding-down of support.
From the announcement today, we now know that:
– Support will be continued to the end of July in full, with employers required to contribute after that date.
– Part time working will be permitted, but only for some employees
– The same level of overall support – 80% of wages up to a maximum of £2500 a month – will be maintained
Heather said: ” As the furlough scheme is reduced the Government needs to incentivise business and come up with creative ideas about how business can keep going and retain staff.
“The Chancellor could not go on paying out billions of pounds indefinitely, and everyone understands that, but there needs to be much more joined up thinking between Government and business.”
So far, some 7.5m employees have been furloughed, at a cost approaching £10bn.
The expected costs to the end of July are likely to be around £50bn, with the extension at a reduced level to the end of October perhaps costing a further £20bn. These are very significant sums, amounting to around 10% of total Government receipts.
As Britain seeks to get back to work, the pressures on different sectors will be very uneven.
While some sectors, such as construction and financial services, are getting back to work, others such as leisure and hospitality will be much slower to recover.
And the position in the tourism and heritage sectors is likely to become critical if they lose the whole of the Summer season.
Heather Self said: “Enabling part time work is welcome, as it will permit a gradual return to work. But the Chancellor said this would only be available to businesses “currently using” the scheme – it is not clear what the cut-off date will be for businesses still considering whether they need to furlough employees.
“The Chancellor needs to pay attention to the needs of different sectors, difficult though this may be. Leisure and hospitality businesses are unlikely to be able to cope with reopening fully by the end of July, and may need to contemplate redundancies.
“Additional support beyond the furlough scheme will be needed for a long time – whether loans such as the CBILS scheme, or grants, or incentives such as an increase in the Employment Allowance to encourage employers to maintain their staff levels, or even take on new employees.”
