Ben Lake MP responds to furlough scheme changes

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Plaid Cymru’s Treasury Spokesperson Ben Lake MP has said that the Chancellor has "failed to recognise regional and sectoral differences" by announcing cuts to Covid support schemes. 

On Friday, 29 May, the Chancellor announced that the UK's coronavirus furlough scheme will finish at the end of October. From August, employers must pay National Insurance and pension contributions, then 10% of pay from September, rising to 20% in October. Also, workers will be allowed to return to work part-time from July, but with companies paying 100% of wages. 

The Chancellor also confirmed that the self-employed scheme would be extended a final time for a three month period.

Plaid Cymru’s Treasury Spokesperson Ben Lake MP has said that the Chancellor has "failed to recognise regional and sectoral differences" by announcing cuts to Covid support schemes. 

On Friday, 29 May, the Chancellor announced that the UK's coronavirus furlough scheme will finish at the end of October. From August, employers must pay National Insurance and pension contributions, then 10% of pay from September, rising to 20% in October. Also, workers will be allowed to return to work part-time from July, but with companies paying 100% of wages. 

The Chancellor also confirmed that the self-employed scheme would be extended a final time for a three month period.

In response to these announcements, Ben Lake MP said: 

"An extension to the Self Employed Income Support Scheme is welcome, although it remains to be seen if the Chancellor will address the deficiencies of the first scheme to ensure that the individuals who were left behind will be able to benefit from the second phase.

"I fear that unless the Chancellor amends his plans to phase out the Jobs Retention Scheme to take into account the different challenges that businesses in different sectors and areas face, he risks undermining the hard work that has been done to save many jobs during this pandemic. 

"It is possible that some businesses will not even be out of lockdown by the time the furlough scheme starts to be phased out, and I know that this will make it incredibly difficult for them to survive. It is disappointing that the Chancellor failed to recognise regional and sectoral differences, and I hope that I, along with other MPs, will be able to convince him to reconsider his approach in this regard.

"Businesses in Wales may well need support for longer than those in London, due to the way in which the outbreak has progressed across the UK, and certain sectors, such as tourism and hospitality, need support to ensure that they are able to survive the loss of such a large portion of their season. 

"These are issues that I will be raising in Parliament, for an approach that suits the needs of London will not necessarily work for Wales. For the sake of public health and the health of the economy, we must not see a rushed, one-size-fits-all approach to these vital support measures."

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