Fears that second Covid wave will be ‘knockout punch’ for high streets
Amid fears of a resurgence of coronavirus in the UK and the implementation of stricter controls, Mr Sunak launched his winter economic plan last week. Retailers were left disappointed as the Chancellor did not extend a business rates holiday, which is due to end in April.
Industry bosses warned of a “looming threat” from the re-introduction of the £8bn-a-year business rates regime and urged Mr Sunak to commit to a fresh extension to “avoid unnecessary job losses and shop closures”.
Labour, meanwhile, said that the events, arts, leisure and sports sectors will be hit particularly hard. Those at risk of being “dumped on the scrapheap” included almost 500,000 people employed by night clubs, pubs and bars.
The creative, arts and entertainment sector supports 90,000 jobs and the sports industry almost 370,000 positions, MPs said.
At the heart of Mr Sunak’s plans is the Job Support Scheme. From Nov 1, for staff whose employers can only provide part-time work, the Exchequer will top-up pay for normal working hours for up to six months.
The Government’s contribution will be capped at just under £700, considerably lower than the £2,500 under the original furlough scheme. The new support measure will cost the Treasury a fraction of what it paid out for the furlough scheme.
