Hospitality, music industry and retail leaders welcome furlough extension - but say businesses still need a clearer long-term plan from Government

Business leaders and industry bodies have welcomed the Chancellor’s announcement that the furlough scheme will be extended until March - but warned that sectors still need a clearer long-term roadmap from Government, and further support. 

Rishi Sunak announced on Thursday that the Coronavirus Job Retention Scheme is to be extended to the end of March in a bid to “protect millions of jobs” during the coronavirus second wave.

The scheme will see the Treasury pay 80% of wages of furloughed employees up to £2,500 per month.

It will also see further support for the self-employed increase until January to see it cover 80% of average profits up to £7,500.

It is estimated the extended scheme could cost up to £100 billion.  

Hotelier Mark Fuller, who is behind Sanctum Soho Hotel, told the Standard "the extension of the furlough has given our industry something to hang onto".

He said: "Quite simply had this not been done, millions would have lost their jobs - thousands in Soho alone.

"I was looking at laying off 30 staff without pay. Now they have something. 

“We will fight on…  we will pick ourselves up , dust ourselves off , fix our bayonets and head back into battle to survive.” 

The live music industry has been particularly hard hit by the pandemic. Mass performances and gigs have been cancelled since March, and the sector has seen mass redundancies for employees, and freelancers struggling to get by.  

Greg Parmley, chair of industry body, LIVE, told the Standard: "It's really positive news, it is great.

"It is fantastic especially as it seems you can re-hire people who were let go since September 23, which will be very welcome considering the level of redundancies starting to happen [in the sector] in the run up to furlough ending."

Mike Cherry, chair of the Federation of Small Businesses said in statement that "at a time of unprecedented restrictions, this will help small employers and the self-employed to mitigate some of the economic damage".

But other industry bodies and business leaders cautioned that although the extension is welcome, further support and clarity is needed.

The British Chambers of Commerce director general, Adam Marshall, said in a statement: "These changes give businesses significant reassurance over an uncertain winter, but many will understandably still wish for the government to give a clearer view of the road ahead.

"Government must set out longer-term measures over the next 12 months to give firms greater certainty and confidence to plan proactively, rather than to react to changes in support from week to week."

Matt Grech-Smith, co-chief executive of Competitive Socialising, the company behind central London's crazy golf club, Swingers, concurred. He told the Standard: "The extended furlough scheme sounds good, but without a road map to go with it, it’s a little meaningless."

Marcos Fernandez, owner of Iberica Restaurant Group and Arros QD, told the Standard: “Finally the chancellor lays some certainty to business. Now it would be good to have further notice of future lockdowns.

Chef Adam Handling, behind Covent Garden restaurant, Frog, welcomed the move, telling the Standard it meant "my staff all get to stay in a job".

But the entrepreneur also cautioned that it is unclear how long the 80% contribution from the Treasury would last - or whether it would taper off as with the previous scheme.

Emma McClarkin, chief executive of the British Beer & Pub Association, said that the Chancellor had "delivered on some of the immediate support we need".  

However, she added: "We also need a longer-term stimulus package for our sector that enables it to play a leading role in the social and economic recovery."

The Society of Independent Brewers said that the organisation would join other with hospitality trade bodies in continuing "to campaign for a full, 6 month package of measures for breweries, pubs and hospitality".

Michael Kill, chief executive of the Night Time Industries Association, said in a statement that he welcomed the move but called the announcement "somewhat belated".

He also warned that the extension does not solve all the issues night time industries still face.

He said: “The furlough scheme will absolutely help preserve jobs within the sector, but the challenge still remains, where there is still a considerable void in financial support for night time economy businesses, will there be jobs to go back to?”

The news came after a week that saw a wave of redundancies across retail and hospitality, with the pain reaching into City sectors including banking and legal services.