Rishi Sunak has confirmed that the furlough scheme will be extended once again to provide “certainty for millions of jobs and businesses”. The move now sees the furlough scheme extended into April 2021, which will see the Government continue paying up to 80% of the wages of those who have been furloughed.
Mr Sunak also confirmed that he would be extending the government-guaranteed Covid-19 business loan scheme until the end of March to further protect businesses.
Daniel Fallows, Director at Gorilla Accounting, believes this is a positive move and one that will continue to provide stability for millions of jobs.
He said: “We welcome the move to extend the furlough scheme by a further month. It provides some much-needed stability for businesses and employees and allows us to get closer to normal in the spring and summer.
“The move has undoubtedly taken pressure off thousands of businesses across the UK, allowing them to plan for 2021 with more clarity thanks to the extended support. With the roll-out of a vaccine underway, there is optimism that most businesses should be back up and running by the end of Q1 or start of Q2.”
A review of the furlough scheme had been expected in January, but the Chancellor brought this date forward to provide more stability as we head into the new year.
The furlough extension was revealed alongside the announcement of the UK’s next budget taking place on 3rd March 2021. During the upcoming budget, the Government will likely set out more details on further schemes to support businesses throughout 2021, after the likes of the Bounce-Back loan scheme and Coronavirus business interruptions loans will end.