Shropshire and Wales MPs welcome extension of furlough scheme
MPs across Shropshire and Mid Wales have welcomed the Chancellor's decision to extend the furlough scheme until the autumn.
Rishi Sunak has told MPs that the scheme, where workers who are temporarily laid off receive 80 per cent of their normal pay, would continue until the end of October.
However, from July onwards, workers would be allowed to return to work on a part-time basis if their employers made a contribution to the cost.
Mr Sunak said it would give employers more flexibility in getting their businesses up and running again.
He added that furloughed workers would continue to receive 80 per cent of their regular pay, despite speculation that this would be cut to 60 per cent.
Telford MP Lucy Allan said the announcement had left her much more optimistic about the future of the town's economy, although she warned of a long road to recovery for many businesses.
She said the furlough scheme had been a 'lifeline' for many businesses.
"We have a large hospitality and retail sector – a sector which has been hit hard, and we have many car parts supply chain manufacturing jobs, again a sector that has really struggled with a complete fall off in sales," she said.
"The extension of furloughing is hugely welcome and as people start returning to work there will be the flexibility for employees to work part time as businesses get back up to normal productivity levels and footfall and demand gradually increases.
"This is exactly what our economy in Telford needs to begin its recovery. I feel much more optimistic about our future today.”
Philip Dunne, MP for Ludlow, welcomed news that furloughed workers would continue to receive 80 per cent of their salaries.
"I'm not surprised he's decided to extend, and it will be up to employers and businesses to decide whether they can return to normal, or continue to keep staff furloughed," he said.
"It is something that will need to be decided on a case-by-case basis, it will be different for every kind of company, it was never going to be a one-size-fits-all situation. That flexibility should help employers keep staff on their books, so they can maintain jobs."
Mark Pritchard, MP for The Wrekin, also welcomed the extension, but said the scheme could not continue indefinitely.
He said employers had an important role to play in helping to get the economy back to normality.
"I welcome the scheme's extension as the virus is still being bought under control, but employers must now make workplaces Covid-secure or ensure employees are working from home productively," he said.
"The economy must get moving again. Pay cheques cannot be subsidised indefinitely, but this is the right measure at this time."
Daniel Kawczynski said that while it was right to extend the furlough scheme, he was concerned too many people were still 'falling through the cracks' and not getting the support they needed because they did not meet the criteria.
He said he was regularly being approached by constituents who, through no fault of their own, were being left without enough money to live on because their businesses had been forced to close.
"We are dealing with some households in Shrewsbury where there are four people in one house, and with almost zero income," he said.
"I'm following this up with the Chancellor.
"I agree we should continue with the furlough scheme in a way that slowly tapers off. We need to assure people they are supported at this difficult time, but to encourage people back to work where it is safe to do so."
Owen Paterson, MP for North Shropshire, said extending the scheme was the right thing to do to support the economy, but was disappointed that it was necessary.
"What's depressing is we are looking at taking this thing into the autumn, it's really dispiriting," he said.
Mr Paterson welcomed the added flexibility that would enable people to return to work part-time.
Craig Williams, MP for Montgomeryshire said the scheme was particularly important in a constituency such as his, which was heavily dependent on the visitor economy, and he was glad the Chancellor had kept the 80 per cent rate.
"I think it's terrific news, it gives businesses certainty at least until the end of July," he said.
"As the MP for a constituency which is hugely reliant on tourism and hospitality, there's absolutely no possibility of that opening up right now.
"They need that support to keep their businesses going, it would have been very difficult had that not been kept at 80 per cent."
