Rishi Sunak extends UK’s furlough and loan schemes for COVID-hit economy

furlough scheme launched in Britain to save jobs during coronavirus lockdown has been extended for an extra month until end of April 2021, with government continuing to contribute 80 percent towards ws, Chancellor of Exchequer Rishi Sunak anunced on Thursday.

finance minister, who has been leing country's ecomic response to pandemic, also confirmed that he would be extending government-guaranteed COVID-19 business loan schemes until end of March, from current deline of January, with a Budget set to be tabled on March 3, 2021.

A Budget h been expected a few months ago, but this was scrapped due to uncertainties mounting due to continuing cycle of lockdowns.

"Our pack of support for businesses and workers continues to be one of most generous and effective in world – helping our ecomy to recover and protecting livelihoods across country," said Sunak.

We kw premium businesses place on certainty, so it is right that we enable businesses to plan ahe regardless of path virus takes, which is why we’re providing certainty and clarity by extending this support, as well as implementing our Plan for Jobs, he said.

minister said his Budget next year will deliver next phase of plan to tackle virus and protect jobs and that Coronavirus Job Retention Scheme (CJRS) scheme, or furlough, has so far protected 9.6 million jobs across UK, with more than 1 million businesses accessing loans to help m through crisis.

"While our loan schemes have provided a vital lifeline to millions of firms across country, we kw that business owners need ditional certainty as we he into New Year," said UK Business Secretary Alok Sharma.

Extending government-backed loan schemes will give companies right across UK finance y need to support, protect, and create jobs as we build back better from pandemic, he said.

As part of plans in place, government will continue to pay 80 percent of salary of employees for hours t worked until end of April. Employers will only be required to pay ws, National Insurance Contributions (NICS) and pensions for hours worked; and NICS and pensions for hours t worked.

Businesses will also be given until end of March to access Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme, and Coronavirus Large Business Interruption Loan Scheme. se h been due to close at end of January.

UK’s Treasury Department said schemes have alrey provided over 68 billion pounds in guaranteed loans and helped to keep afloat business in all sectors of UK ecomy that have been impacted by a coronavirus.

“We are extending schemes w, ahe of Christmas and furr into New Year, to ensure that businesses can continue to access support y need to grow and recover,” Treasury said.

It has previously anunced that more support will be available beyond March, through a successor loan scheme. 

(IM CREDITS:AP)