Budget 2021: employers call for furlough extension

News Article

General Secretary of the Trades Union Congress (TUC), Frances O’Grady, states that she hopes Chancellor Rishi Sunak’s Budget announcement will protect workers’ jobs, businesses and the economy over the uncertain upcoming months.

One factor many employers’ want to see is the extension of the furlough scheme beyond 30 April.

The Chartered Institute of Personnel and Development (CIPD) states that this extension will “help businesses plan and continue to protect jobs against a very uncertain backdrop through spring and early summer”.

Other organisations, such as the Institute for Fiscal Studies (IFS), back this call but ask for a clear plan to phase the scheme out.

Director of IFS, Paul Johnson, warns that an extension to the Coronavirus Job Retention Scheme (CJRS) needs to be limited and targeted to the most in need – such as those in aviation and the airport industry.

He says the Government needs to “strike a balance between continuing support for jobs and businesses harmed by lockdowns and weaning the economy off blanket support that will impede necessary economic adjustment”.

Without this extended support, many businesses will have to face the difficult decision of cutting down their workforce.

The 2021 Budget will take place on 3 March 2021.

Samantha Randall, an Employment Law expert at Palmers, said: “The impact of the coronavirus pandemic has meant that more employers are considering redundancy to protect their business.

“Employers need to outline a fair selection process and adhere to their obligations, and must seek specialist advice if they require help.”

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