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Stuart Gentle Publisher at Onrec

Furlough extension will given financial assurance to businesses, says LexLeyton

Responding to the Chancellor’s extension of the furlough scheme until March, Musab Hemsi, Partner, LexLeyton said:

“This news will come as a major relief to the UK’s employers, and the extension of the scheme until at least March shows a welcome long-term commitment to supporting businesses through this phase of the crisis. It will give business leaders the financial assurance and time they need to plan and weigh up their options as they look beyond this lockdown with a view to reopening, in some capacity, for the festive period. As a result of the announcement, the planned Job Support Scheme Closed will essentially be replaced by the extended furlough scheme for the time being.

“Now that businesses have this commitment from the Chancellor, a period of stability is sorely needed. UK companies have been through a turbulent period and government support has at times been changed at the last minute and announced without sufficient information for businesses. We need to see a Treasury Direction – ideally this week – to enshrine the new plan and give employers the information they need. From here, businesses should have a solid foothold to firm up their plans for the remainder of the year and looking ahead to 2021.”