Furlough pay needs to be paid soon, warns Dorset Chamber

Furlough pay needs to be paid soon, warns Dorset Chamber

Published by George Sharpe at 4:07pm 16th April 2020.

Dorset Chamber are urging the government to 'turn on the taps' to pay for furlough leave.

They're warning the Job Retention Scheme needs speeding up to ensure firms could pay wages at the end of April.

HM Revenue & Customs says the scheme will be open to applications during the week commencing April 20.

Ian Girling, chief executive of the Dorset Chamber, said: 

"Businesses on the frontline need cash to start flowing from support schemes fast. 

"I recognise that the government has faced a monumental task to put systems in place to implement the scheme and has signalled that it will open for applications on April 20.

"But with April's payday coming up, we are fast approaching a crunch point, and both the furlough scheme and CBILS emergency loan facilities need to be accelerated."

Money wallet

Ian added that even if firms applied on April 20 there was no guarantee exactly when grants to cover wages would arrive.

"While we've seen a high number of firms furloughing staff in anticipation of the scheme coming online, it is still unclear whether they will start receiving funds before their payroll date.

"This could exacerbate the cash crisis many businesses are facing.  It is vital that the Chancellor turns on the taps and makes payments to businesses as soon as possible. 

"Any delay could mean more livelihoods under threat, more business failures, and more hardship in our communities. 

"It could be an absolute disaster if the money businesses have been faithfully promised is not there in time."

The scheme - announced on March 20 - covers the cost of wages backdated to March 1 and is set to remain open for three months.