Pub bosses welcome Rishi Sunak's furlough bonus as retailers turn handouts down

Pub group bosses on Monday justified their decision to take Government handouts from a scheme designed to save jobs, as a growing number of High Street chains decided not to take the cash.

Chancellor Rishi Sunak last week launched the Job Retention Bonus scheme, offering £1000 per employee brought back from furlough. Over the weekend it emerged that fashion retailer Primark, which saw huge queues on reopening English stores last month, and bookmaker William Hill had decided not to take the money.

The scheme is expected to cost the Treasury around £8 billion and has drawn criticism that it could simply delay inevitable job losses or give healthy firms unneeded cash for staff who would have come back anyway.

Today, more bosses were meeting to decide whether to take the Government support. It is understood mutual John Lewis, which furloughed 14,000 of its partners and announced 1300 job cuts last week, is unlikely to apply for the scheme.

Meanwhile sources close to rival Next and High Street baker Greggs said the issue was under review. The latter had put focus on implementing Sunak’s cut to VAT, which comes in on Wednesday, and will now turn its attention to the furlough issue, sources said.

The bonus scheme gives companies £1000 per person continuously employed until January, with payment in February. It has been welcomed in consumer-facing industries such as hospitality, which have been hurt by people staying at home.

Pubs were only allowed to reopen on July 4, and bosses are looking to accept the Government handout.

Patrick Dardis, chief executive of London firm Young’s, told the Standard the intention currently is to accept it. Young’s furloughed around 4500 people and starts reopening sites from later this month.

He said: “The damage done by a four-month total closure of our business is huge. We had to significantly increase our debt, short term, which we will have to be paid down. Deferral of VAT payments will have to be paid, whilst the business was burning significant amounts of cash each month of closure.”

He added: “No retail business is out of the woods, far from it. In order to keep lots of businesses going and to protect jobs, all help from the Government will be appreciated and very much needed.”

Clive Watson, the chairman of City Pub Group said: “The hospitality industry has been the hardest hit and social distancing even at a metre reduced our capacity and trade. Any support from the Chancellor is vital to keep our sector alive and we will apply for the £1000 incentive to bring staff back from furlough.”