Home Business News CBI warns of redundancies when furlough scheme ends

CBI warns of redundancies when furlough scheme ends

12th Jun 20 11:16 am

The Confederation of British Industry (CBI) have warned that there will be a spike in redundancies this autumn when the furlough scheme ends.

Dame Carolyn Fairbairn, Director-General of the CBI said joblessness will rise once the government withdraws support schemes in October.

Dame Fairbairn wrote to the Prime Minister saying, “Redundancies will rise fast over the autumn as support schemes, especially the Jobs Retention Scheme, wind down.”

She said that redundancies could affect parts of society more than others, she added, “Past recessions show that joblessness is deeply uneven.

“Without immediate intervention, pre-crisis inequalities across regions, gender, and race will worsen. Long term unemployment will leave generational scars.”

The CBI have made several proposals the government should implement, job creation, investing in the green economy, and targeted financial support to start “consumer demand.”

The CBI have made other proposals such as setting up a “future skills fund” to support areas that have a high job potential “such as digital, low carbon and health.”

Dame Fairbairn has also called on an extension for business rates relief for “mid-sized businesses in all sectors to reduce fixed costs.”

She said, “A world class test and trace system is the foundation for a UK that is safe to visit, invest in, work and study in.

“Time is of the essence. Smart, fast policy is needed now to accelerate the process to minimise the human cost and in particular protect the futures of our young people.

“Together with our members and in consultation with the unions, the CBI has developed simple, implementable proposals that can be acted on now to create the best possible recovery.”

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