REC response to the Chancellor's statement on the Winter Economy Plan

In response to the Chancellor’s statement on further support for jobs and businesses, Neil Carberry, Chief Executive of the REC, said:

“Businesses will welcome much of what the Chancellor has announced. The Job Support Scheme is a big step that is needed in the face of a longer crisis. It’s right to focus on supporting people in work rather than those fully away from jobs that may not be sustainable in the long-term. The detailed design of the scheme should be careful to ensure that it incentivises businesses to keep workers on, not let them go.

“Many firms will breathe a sigh of relief at the cashflow support the Chancellor offered – especially  the VAT and loan repayment deferrals. The extension of support for the self-employed is another a key step. The lack of support for small owner-operating Directors of businesses remains a gap in the structure of government support that we would like the Chancellor to address. These people are key to the recovery of our small businesses.

“The disappointing part of today’s announcement was the lack of focus on the new jobs we need to create. Reductions to the cost of employment via NI and action on a more flexible skills system are vital. And as welcome as today’s additional support is, businesses are looking to government to deliver on testing, which is the way to ensure we can fight the virus and keep the economy going. Another full lockdown must be avoided.”

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