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Workers at companies told to close as part of virus restrictions will receive two-thirds of their wages
The Labor Party and business groups have raised concerns about the “domino effect” of the Covid shutdowns that are expected to be announced on Monday.
On Friday, the chancellor said that staff at UK companies told to close would receive 67% of their salaries from the government under the expanded Labor Support Scheme.
But no specific aid was announced for workers who may be indirectly affected, for example those in supply chains.
The Treasury denied that companies that are not completely closed will not receive help.
About one million workers will be at risk for labor claims, including 500,000 people in the wedding industry, 369,000 in the sports industry and 142,000 event catering companies.
Shadow business secretary Ed Miliband said: “There are huge holes in the new safety net.”
A Treasury spokesman said: “We do not recognize these figures,” adding that the Labor Party had “incorrectly” listed some sectors as not benefiting from the scheme.
The spokesperson added: “Companies that are open can use the other element of the Labor Support Plan, which is aimed at those who can open but with lower levels of demand.
“And of course they can also access the other help we have made available, including billions of pounds in grants, loans and tax cuts.”
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The Employment Support Plan was announced by Mr. Sunak on September 24 and will supersede the “leave” plan as of November 1 for six months.
“Complete” wages for employees who cannot work their normal hours.
The expanded plan, announced Friday and available to companies ordered to close, will provide two-thirds of wages to employees unable to work.
On Monday, Boris Johnson is expected to announce a tiered system of measures for England in an effort to halt rising infection rates.
Under the new system, different parts of the country would fall into one of three categories.
The worst affected areas, which may include much of the north of England, could see their pubs and restaurants closed.
Shadow Business Secretary Ed Miliband said the government had been “forced to escalate” for supporting the business closure.
But he said businesses that include weddings, theaters, cinemas, events and many vendors would be left out “on a technicality” because they have been “forced to shut down everything but the name,” he said.
Miliband added: “Ministers must urgently reconsider their damaging sink or swim approach that sends entire sectors of our economy to scrap.”
Roger Barker, Policy Director for the Institute of Directors, said the new measures established by the chancellor on Friday were a “useful step” to support companies affected by the shutdown.
But he said their impact would be limited because “they don’t take into account the domino effect of the restrictions on the economy.”
He added: “It is becoming increasingly clear that the Chancellor’s previous strategy of phasing out business support and allowing supposedly ‘unviable’ businesses to fail was premature in the face of a resurgent virus.
“Friday’s measures should be seen as the beginning of renewed efforts to maintain the survival of businesses and jobs if long-term damage to the economy is to be avoided.”
Adam Marshall, Managing Director of the British Chamber of Commerce, also said the new support did not go far enough to protect businesses in supply chains and in urban centers, urging: “Your concerns about flow must be addressed. of cash and concerns about future demand. “
