Furlough is just one of the topics which is on the Chancellor of the Exchequer Rishi Sunak’s agenda, as he is now just days away from delivering his economic plan in the annual Budget. This year, the Chancellor is tasked with steering Britain out of the pandemic, and laying out key plans to help millions of people across the country at this difficult time. With ongoing issues created by the pandemic, as well as the continuation of lockdown, the Government has been urged to take action.
Specifically, one organisation has highlighted the “boost” the country needs through this Budget which will help the UK to grow after a year of restrictions.
The Confederation of British Industry (CBI) has now outlined three key areas for Mr Sunak to focus on in order to help the country out of lockdown.
One area of concern is the furlough scheme, which is set to end in just over one month’s time under current plans.
The CBI has urged the Chancellor to protect “jobs, firms and livelihoods in the immediate term” by extending the furlough scheme, as well as providing additional further VAT deferrals.
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Under the extended version of the scheme, the Government has contributed 80 percent towards wages to ensure Britons are financially supported during this challenging time.
However, with the scheme due to end, many feel they are facing a cliff edge of support the Chancellor could potentially rectify.
Rain Newton Smith, CBI Chief Economist, commented on the matter.
She said: “This is a Budget like no other, with many businesses still on their knees after the devastating impact of the pandemic.
Aside from furlough, support for the self-employed through SEISS, as well as announcements on Universal Credit are expected to arise.
But as the CBI has stressed, of equal importance is clarity for British businesses to help boost the economy.
Ms Newton Smith concluded: “Consumption and Government spending alone can’t set us on the path to recovery.
“We need a dynamic and competitive business community powering us forward.
“That means avoiding any moves in the short-term that would hold business back from doing what it does best: innovating, creating jobs and delivering greater prosperity for all.”
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