No extension of business support schemes, despite delay in easing restrictions

Business support measures including furlough scheme have not been extended, despite the government’s decision to delay the easing of Covid-19 restrictions until 19th July.

During questions from the media, Prime Minister Boris Johnson confirmed there were no plans from the Treasury to extend Covid-19 business support introduced to help businesses that were unable to trade, either fully or in part, due to the pandemic.

Under the extension, hospitality businesses will continue to have to enforce social distancing guidelines, limiting their capacity, with nightclubs remaining entirely closed until July. Weddings and wakes will be permitted to host more than 30 guests; however, venues will still be required to enforce social distancing and table service, limiting the size of events they can continue to host.

The Chancellor is also not expected to continue to extend the furlough scheme, or other support such as a VAT reduction on hospitality to support businesses through the ongoing restrictions.

A ban on commercial tenancy evictions, due to be lifted on 30th June once businesses were fully able to reopen, will also still take place.

The hospitality sector has been most vocal in criticising the move, despite assurances from the Prime Minister last week that there was no need for a delay. Greater Manchester’s Night-time Economy Adviser Sacha Lord criticising Boris Johnson’s handling of the announcement in an interview with Rachel Burden on BBC Radio 5 Live’s Breakfast show this morning. He said that the leaking of the decision to the press ahead of the announcement created unnecessary uncertainty for businesses in the sector, and that failing to extend the furlough scheme would cause unnecessary job losses, particularly for young people who make up the majority of workers in the hospitality sector.