“Chancellor right to reject calls for furlough extension”, says IEA expert
14 June 2021
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Government and Institutions
Commenting on calls to extend the furlough scheme, Julian Jessop, Economics Fellow at free market think tank the Institute of Economic Affairs, said:
“The Chancellor is right to push back against calls to extend the furlough scheme, which is already due to last until 30th September. The economy, as measured by GDP, should be back to its pre-Covid size by then, despite the short delay to ‘Freedom Day’.
“Employers will have to contribute to the costs of the scheme from 1st July, but starting at just 10 per cent of wages for hours not worked. It still makes sense to wean businesses off furlough before ending the scheme completely, especially given the recent improvements in employment surveys and other labour market data.
“It is increasingly clear that the furlough scheme is now contributing to staff shortages and holding back the recovery, including in hospitality. With most of the economy open again, people should be encouraged to find new jobs, instead of being locked into their old ones”
ENDS
Notes to editors
Contact: Emily Carver, Head of Media, 07715942731
IEA spokespeople are available for interview and further comment.
“The Chancellor is right to push back against calls to extend the furlough scheme, which is already due to last until 30th September. The economy, as measured by GDP, should be back to its pre-Covid size by then, despite the short delay to ‘Freedom Day’.
“Employers will have to contribute to the costs of the scheme from 1st July, but starting at just 10 per cent of wages for hours not worked. It still makes sense to wean businesses off furlough before ending the scheme completely, especially given the recent improvements in employment surveys and other labour market data.
“It is increasingly clear that the furlough scheme is now contributing to staff shortages and holding back the recovery, including in hospitality. With most of the economy open again, people should be encouraged to find new jobs, instead of being locked into their old ones”
ENDS
Notes to editors
Contact: Emily Carver, Head of Media, 07715942731
IEA spokespeople are available for interview and further comment.
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