Local MP Antony Higginbotham has welcomed the Plan for Jobs set out by Chancellor Rishi Sunak, saying it provides much-needed support to businesses across the Borough, coming on top of the announcement from the Prime Minister last week to fund shovel-ready projects across the country.
Since the start of the coronavirus pandemic, the Government has said it will do whatever it takes to protect people and businesses from the immediate economic crisis. As part of this, more than 11,200 local jobs have been supported through the Coronavirus Job Retention Scheme, allowing employers to put workers on furlough while the Government supports their wages. And businesses have been supported to, from rates relief and grant funding to loan guarantees and tax deferral.
The Chancellor has now set out the second phase of the Government’s response, focusing on jobs: supporting people to find the jobs that are out there, creating new jobs through investing in infrastructure, and protecting jobs by revitalising the hard-hit sectors upon which many jobs depend. As part of this, employers will be encouraged to retain staff who have been on the furlough scheme, with the Government paying a one-off bonus of £1,000 for every employee who was furloughed and who is kept on until January. If all those on furlough across the Borough were brought back that would represent an £11.2m cash injection into local businesses on top of the funding already provided to them.
Also included in the Government’s £30 billion Plan for Jobs is a much-needed boost for tourism and hospitality businesses as we enter the summer season, recognising that many of these businesses were forced to close and are only now beginning to re-open. From hotels like Crow Wood to restaurants across the town centres of Burnley and Padiham, up to 390 local businesses could benefit from the new measures announced. This includes a VAT rate cut from 20 per cent to 5 per cent for six months and a new Eat Out to Help Out scheme which Antony is urging all local people to support. Through the scheme the Government will pay for up to 50 per cent of people’s meals out at restaurants, pubs and café’s on Mondays, Tuesdays and Wednesday’s throughout August. Businesses can claim the money back from the Government, which will be paid in five working days. Up to 215 businesses in Burnley could benefit from the move.
The Plan announced by the Chancellor also goes further and includes extra stimulus for the housing market through a temporary removal of all stamp duty on homes under £500,000 until the end of March 2021 which takes immediate effect. This will kick-start house moves and the construction industry, getting builders building again.
A new Kickstart Scheme will create hundreds of thousands of new, fully subsidised jobs for young people, recognising that they often pay the highest price in any downturn. And a multi-billion-pound investment in creating new, green-jobs, will benefit local firms like Veka with households given cash grants to improve the energy efficiency of their homes through improvements like uPVC windows and better insulation.
Taken together, these measures will provide a timely and much-needed boost to all sectors and industries in Burnley, forming a key part of the Government’s plan for jobs – supporting people to find jobs, creating new jobs and protecting jobs in hard-hit sectors.
Following the Plan for Jobs, the Government will soon turn its attention to a third phase – a moment for rebuilding and the Chancellor will produce a Budget and a Spending Review in the autumn.
Commenting, Antony Higginbotham said:
“Throughout the coronavirus crisis, the Conservative Government has stood squarely behind people and businesses with one of the largest and most comprehensive packages of support anywhere in the world. As we turn our attention to carefully reopening our economy, it is right that the Chancellor is doing everything in his power to support, protect and create jobs in hospitality, in manufacturing and in aerospace.
We shouldn’t underestimate how difficult recent months have been for many businesses but now that the virus is coming under control, we must turn our attention to creating and protecting jobs. By levelling up the whole country, we will give businesses the confidence to retain and hire, create jobs in every region and ensure young people have the opportunity of a better start.”
