Chancellor set to reveal fresh plans to protect jobs

The chancellor is expected to outline plans to limit job losses later, following the latest introduction of coronavirus restrictions.

Rishi Sunak will address the Commons after 11.45am and will announce how he hopes to protect jobs in sectors hit hardest by Covid measures.

With the furlough scheme due to finish at the end of October, Sunak and his colleagues in the UK Government have come under pressure from politicians – including First Minister Nicola Sturgeon – and unions to extend the support to workers.

It was also revealed on Wednesday, there will be no UK budget in the Autumn as the focus is shifted to prioritising job protection in the present.

The move was criticised by Scottish Government finance secretary Kate Forbes, who said: “This decision is breathtaking in its disregard for Scotland, Northern Ireland and Wales.”

Sunak’s initiative will include VAT cuts, loans for hard hit businesses and wage subsidies, according to reports.

It could see the government and firms share the cost of topping up wages for employees only able to work part-time.

The Treasury said: “We will always be honest with people about the difficult trade-offs that are involved here.

“Not between health and the economy, but between keeping people in jobs and helping them find new ones. And between help in the here and now and rebuilding in the future. That’s what people deserve.”

On Wednesday, Sturgeon said she had written to the Prime Minister asking for more powers or an extension of the job retention scheme.