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Coronavirus Job Retention Scheme: Service Industries

Treasury written question – answered on 13th May 2020.

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Photo of Caroline Lucas Caroline Lucas Green, Brighton, Pavilion

To ask the Chancellor of the Exchequer, whether he plans to introduce a tapered furlough scheme under the Coronovirus Job Retention Scheme for the (a) hospitality, (b) tourism and (c) others sectors of the economy that are most affected by social distancing; and if he will make a statement.

Photo of Angela Crawley Angela Crawley Shadow SNP Spokesperson (Defence Procurement)

To ask the Chancellor of the Exchequer, what steps he is taking to provide furlough payments under the Coronavirus Jobs Retention Scheme for the hospitality sector until social distancing measures allow them to safely reopen, and if he will make a statement.

Photo of Grahame Morris Grahame Morris Labour, Easington

To ask the Chancellor of the Exchequer, if he will extend the Coronavirus Job Retention Scheme to include people employed in the aviation sector to the end of 2020.

Photo of Mike Penning Mike Penning Conservative, Hemel Hempstead

To ask the Secretary of State for Transport, what discussions he has had with the Chancellor of the Exchequer on greater flexibility in the Coronavirus Job Retention Scheme for industries where demand is unpredictable.

Photo of Mike Penning Mike Penning Conservative, Hemel Hempstead

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits on introducing greater flexibility in the Coronavirus Job Retention Scheme for industries where demand is unpredictable.

Photo of Mike Penning Mike Penning Conservative, Hemel Hempstead

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits on introducing a monthly furlough scheme for businesses that have taken vehicles out of service as a result of the covid-19 pandemic.

Photo of Jesse Norman Jesse Norman The Financial Secretary to the Treasury

The Government has extended the Coronavirus Job Retention Scheme until October 2020. Extending the scheme in its current form until July will provide workers, businesses and the economy with clarity on this vital support. After July, the Government will introduce more flexibility to the furlough scheme in a measured way that protects people’s incomes and helps support furloughed employees as they return to work. From August through to the end of October, employers currently using the scheme will have more flexibility to bring their furloughed employees back to work part-time while still receiving support from the scheme. Employers using the scheme will start contributing some of the costs of their workers’ salaries, substituting in part the contribution that the Government is currently making. The Government will outline more details of how this will work by the end of May.

It is the case that some firms will be affected by coronavirus for longer than others, and the Government will seek to support these firms appropriately. It would be challenging to target the CJRS to specific sectors in a fair and deliverable way, and it may not be the case that this is the most effective or sensible way to provide longer term support for those sectors most affected by coronavirus.

The Government will continue to monitor developments and engage with affected sectors, with the aim of ensuring that support provided is right for these sectors and for the economy as a whole.

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