Despite the delay in ending lockdown, Chancellor Rishi Sunak has rejected a call from business leaders to extend furlough.
The scheme, which pays 80% of employee’s wages, is due to be wound down at the end of this month. From 1st July the government’s share will fall to 70% with employers contributing 10% as part of a “tapered” withdrawal of the scheme.
The British Chambers of Commerce has urged the chancellor to delay the winding down of the scheme if the lockdown is extended to 19th July as expected.
But a source at The Treasury said that the scheme is already “one of the most generous in the world” and that the timetable for gradually winding down the scheme will remain the same.
The Chancellor is also resisting calls to extend the ‘business rates holiday’ for retail, hospitality and leisure. The relief is due to fall from 100% to 66% on 1st July – although it will remain in place until March 2022.