Extending furlough

[SleepingBeaver]

If Boris has June 21st in mind for all restrictions to be lifted why is the furlough scheme being extended to September?

Some industries will not suddenly go from 0% to 100%, and will open up gradually.

When he announced June 21st he mumbled masks & distancing may last longer.
If Venues can’t have full capacity they will need help with wages

See previous thread

www.mumsnet.com/Talk/coronavirus/4181549-Furlough-extended-until-end-of-September

Yes June 21st is a bit of a red herring.

As I said on another post about this, the economy can not be switched back on like a tap. It will be a gradual reopening for a lot of businesses and will take time to get back some momentum and be able to work to capacity.

@Hoorayhenryyah fair point

My husband works for a cinema chain. They’ve basically been shut for a year. In that time they’ve still had to pay bills but haven’t had a chance to make any money. Even when they do reopen I can guarantee that people aren’t going to be pouring back in to watch films that may or not have been released depending primarily on the situation in the US. It will take a little feel while for some people to feel confident returning and, as I’ve already said they’ve had absolutely no income for nearly a year. They are unlikely to return to profit for some time.

And many industries will be similar. Even if people return in sufficient numbers to turn some kind of profit it doesn’t change the fact that they have had money going out for a year and nothing coming in. They can’t possibly just start paying everything like normal so it is a welcome relief to hear the chancellor understands they need time to get back on their feet.

Because the economy won't just go back to pre Covid normal on June 21st. Businesses will need time to build up some profits to pay wages.