The Government is expected to unveil an employment rescue package which funds 60% of salaries, according to people briefed on the matter.

The Government is expected to unveil an employment rescue package which funds 60% of salaries, according to people briefed on the matter.

This is expected to be payable to the employer and reclaimed from the government.

London Union’s Jonathan Downey, who is leading a campaign on the issue, said if accurate, the package would not be enough for operators to keep all staff on indefinitely.

He said it was unclear whether the employer would top-up the shortfall 40% to qualify for the 60% Government contribution.

Downey said: “The proposals feel more like a generous unemployment benefit scheme – that will be paid to employees by employers in order to maintain the relationship so that businesses and the economy can bounce back in three months.”

Downey said without a two quarter lease forfeiture moratorium for 25 March and 24 June, many businesses would no longer be viable.

He added: “You know your business best but sensible financial planning would include no or next-to-no income from now until the end of June.

“This will be followed by six months of slow pick up, and where you are and what you do will dictate your projections for July-December 2020.

“Most businesses will no longer be viable, unless they have massive cash reserves.

“We’ve got a business rates holiday which is great and helps but that won’t see us through on no/very low revenue.

“We are pushing back on this and so things may end up being much better but cashflow is going to kill so many businesses.”

 

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