Originally written by Timothy Adler on Small Business
Chancellor Rishi Sunak is eyeing extending the Coronavirus Job Retention Scheme furlough until September with Treasury covering 60 per cent of staff wages.
The Treasury is also considering topping up wages of part-time staff taken off furlough as they drift back in to work.
Previously, the chancellor has said there will be no “cliff edge” of businesses having furlough support suddenly switched off as they reopen. Originally, the furlough scheme was set to expire at the end of May, then July, and now, apparently, September.
Prime minister Boris Johnson announced a very limited opening up of the economy last night, with only those who cannot work from home being encouraged to return to work.
Shops could reopen by the start of June, while some outdoor hospitality venues and cinemas may reopen in July – providing the government sees evidence of the coronavirus dying out.
Garden centres and golf courses are other businesses reportedly being allowed to reopen this week.
Ongoing headache
How to wean businesses off the Coronavirus Job Retention Scheme, which currently costs the Treasury £6bn a month, is an ongoing headache for the Treasury. The scheme could end up costing as much over a year as the NHS.