Covid-19: Expanded job support scheme ‘removes cliff edge’

Hospitality Ulster said the support could provide a vital cushion for many struggling businesses

The UK government has announced further job support measures to help businesses forced to close because of new Covid-19 restrictions.

Under the extended Job Support Scheme, the government will pay two thirds of employees' salaries over the coming months.

Stormont will also receive an extra £200m pounds to help it deal with the pandemic.

Here's a selection of some of the political and business reaction to Chancellor Rishi Sunak's announcement.

Finance Minister Conor Murphy

NI Finance Minister Conor Murphy said the scheme would "remove a cliff edge for many businesses".

"As the executive considers how best to respond to the rising levels of Covid-19, the additional £200m for the executive and the enhanced Job Support Scheme for businesses in areas under local restrictions are welcome," he said.

He added the additional funding would give the executive the ability to consider further increasing its support in the Derry and Strabane District Council area, where some businesses have been forced to limit their operations.

"With the furlough scheme due to end at the end of October my main concern was continued support with wages," he said.

• How much will get paid when furlough ends?

First Minister Arlene Foster

In a tweet, First Minister Arlene Foster also welcomed the announcement as "significant" for Northern Ireland.

"Just finished a constructive discussion with the Chancellor and Chief Secretary to the Treasury about the latest support package," she posted.

"This is something we have been pressing for to help companies who have had to stop trading. There will also be a significant consequential for NI."

Belfast Chamber of Commerce chief executive Simon Hamilton

Belfast Chamber of Commerce chief executive Simon Hamilton said the chancellor's announcement "rightly protects staff but doesn't support businesses which will continue to incur considerable costs to stay alive".

Mr Hamilton added that clarity was required as to whether sectors like the arts, culture and live entertainment venues who remain closed can avail of this new support.

"A lockdown with support for staff wages is better than a lockdown without any support, but we should be in no doubt whatsoever that another lockdown would still do profound and perhaps permanent damage to the local economy," he said.

Mr Hamilton urged the executive to resist another lockdown.

"Continually stopping and restarting large swathes of our economy is simply not sustainable," he said.

Londonderry Chamber of Commerce president Redmond McFadden

Londonderry Chamber of Commerce president Redmond McFadden said the chancellor had taken a "common sense step" by extending the Job Support Scheme.

Pubs, restaurants and hotels in the Derry City and Strabane council area have been operating under tighter restrictions since Monday.

"It will come as a particular relief to our badly-hit hospitality businesses which have been among the worst affected by the new restrictions and will go some way to avoiding widespread job losses and redundancies," he said.

But further government support was needed for businesses that have not been ordered to close, he said, including those in the retail sector or involved in the hospitality industry's supply chain.

"More support in the form of substantial grants and financial aid will be needed from the NI Executive and the UK government to close these gaps and help impacted businesses get through these challenges and stay viable," he added.

Hospitality Ulster chief executive Colin Neill

Hospitality Ulster said the support could provide a vital cushion for many struggling businesses.

"We have made it clear over the last number of weeks that additional restrictions on the hospitality industry without extra financial support, and in particular a targeted scheme for protecting thousands of jobs and livelihoods, would result in total business failure," he said.

"We are hopeful that this support will be a cushion for many hospitality businesses."

Mr Neill said there was now a need to clarify whether business in the north west that had closed due recent localised restrictions could avail of additional support.