Scrapping his full-scale budget as the COVID-19 crisis threatens the UK economy, Rishi Sunak, Chancellor of Exchequer, disclosed the winter economy plan. The new scheme might not save all the jobs, but it brings a sigh of relief for enterprises with the extended loans scheme.
The COVID-19 has badly hit the UK. In its already ongoing divorce settlement with the EU, the COVID-19 has disrupted the already complicated negotiations, and further brought down the economic status.
To battle the ongoing COVID-19 crisis, UK’s Chancellor of Exchequer, has drafted a new plan to rescue millions of jobs and help businesses to survive the winter crisis. In the original plan, Sunak draws attention to the Job Support Scheme while announcing the last date to the furlough or job retention scheme.
This new scheme allows businesses to support their employees throughout the winter months.
The Tech sector of the UK is set to benefit immensely from the job scheme and the extended loan program. Also, the restriction and the threat of the resurgence of the COVID-19 virus, the UK government has enabled enterprises to extend their business loan schemes. Loans that may bounce back can extend from six to 10 years and the deadline for the application of the four schemes may also extend beyond 30 November.
“We welcome Rishi Sunak’s proactive and far-reaching programme of support for jobs and businesses to navigate the Covid-19 demand shockwaves. It signals a shift in gears by the Government towards targeted investment and a sustainable strategy and vision for Britain’s future.” says Stephen Kelly, Chair of Tech Nation. “The new Job Support Scheme backs the growth of industries that are key to driving forward the new economy and providing more valuable jobs, growth and prosperity for the future. The Tech sector is at the heart of Britain’s future,” he adds.
However, the concerns across the tech sector and all industries has another dimension.
“While any measure to keep people in work is a good thing, we cannot forget about those workers who – having already taken a financial hit – might now face a partial loss in pay,” says Robert Marshall, managing director of WorkLife. He further added, “The Chancellor’s new job support scheme will no doubt be met with a sigh of relief by struggling small businesses but, as we move through the pandemic and beyond, employees will remember how well their employer responded when they too needed a helping hand.”
The economy has never been as unreliable and unpredictable as it is today. While the tech sector seems to be booming, it is coming at the cost of the employees’ well-being. The work from home model that first seemed appealing is now having negative repercussions on the employee. “Firms having to employ these measures should now be looking at ways to support employees, especially their financial and mental wellbeing,” says Robert Marshall. But the new reforms could have a positive impact on the situation.
Implementing the plans can result in a huge boost for UK enterprises and permanently influence the UK economy to adopt the digital ecosystem.