OBR: April furlough extension will cost further £3bn
The Chancellor’s decision to extend the furlough scheme an extra month will cost an extra £3bn, according to new official figures.
Rishi Sunak has extended the Coronavirus Job Retention Scheme until the end of April, one month later than had been originally planned.
Sunak also announced that the Government’s three loan schemes would be extended from January until March, costing an additional £4bn.
The UK’s borrowing in November hit more than £30bn, the third-highest monthly total on record.
Despite the eye-watering sums, business groups responded to the extension of both schemes in positive terms.
British Chambers of Commerce Policy chief James Martin said the extensions would “provide much needed certainty and support that (will) protect jobs and livelihoods.”
“Over the coming months, the government should continue to listen to business and evolve it support measures with the on the ground impact of the pandemic.
“Further cashflow support will be needed for companies who are unable to operate for an extended period, or those who face reduced capacity or demand due to ongoing restrictions,” he continued.
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