• Coronavirus Job Retention Scheme will continue until end of October
• furloughed workers across UK will continue to receive 80% of their current salary, up to £2,500
• new flexibility will be introduced from August to get employees back to work and boost economy

In a boost to millions of jobs and businesses, Rishi Sunak said the furlough scheme would be extended by a further four months with workers continuing to receive 80% of their current salary.

As we reopen the economy, we need to support people to get back to work. From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff.

The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.

Chancellor Rishi Sunak said:

Our Coronavirus Job Retention Scheme has protected millions of jobs and businesses across the UK during the outbreak – and I’ve been clear that I want to avoid a cliff edge and get people back to work in a measured way.

This extension and the changes we are making to the scheme will give flexibility to businesses while protecting the livelihoods of the British people and our future economic prospects.

New statistics published today revealed the job retention scheme has protected 7.5 million workers and almost 1 million businesses.

The scheme will continue in its current form until the end of July and the changes to allow more flexibility will come in from the start of August. More specific details and information around its implementation will be made available by the end of this month.

The government will explore ways through which furloughed workers who wish to do additional training or learn new skills are supported during this period. It will also continue to work closely with the Devolved Administrations to ensure the scheme supports people across the Union.

The Chancellor’s decision to extend the scheme, which will continue to apply across all regions and sectors in the UK economy, comes after the government outlined its plan for the next phase of its response to the coronavirus outbreak.

The scheme is just one part of the government’s world-leading economic response to coronavirus, including an unprecedented package for the self-employed, loans and guarantees that have so far provided billions of pounds in support, tax deferrals and grants for small businesses.

Today the government is also publishing new statistics that show businesses have benefitted from over £14 billion in loans and guarantees to support their cashflow during the crisis. This includes 268,000 Bounce Back Loans worth £8.3 billion, 36,000 loans worth over £6 billion through the Coronavirus Business Interruption Loan Scheme, and £359 million through the Coronavirus Large Business Interruption Loan Scheme.

Mike Cherry, National Chairman of the Federation of Small Businesses, said:

The Job Retention Scheme is a lifeline which has been hugely beneficial in helping small employers keep their staff in work, and it’s extension is welcome. Small employers have told us that part-time furloughing will help them recover from this crisis and it is welcome that new flexibility is announced today.

BCC Director General Adam Marshall said:

The extension of the Job Retention Scheme will come as a huge help and a huge relief for businesses across the UK.

The Chancellor is once again listening to what we’ve been saying, and the changes planned will help businesses bring their people back to work through the introduction of a part-time furlough scheme. We will engage with the Treasury and HMRC on the detail to ensure that this gives companies the flexibility they need to reopen safely.

Over the coming months, the government should continue to listen to business and evolve the scheme in line with what’s happening on the ground. Further support may yet 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.

Dame Carolyn Fairbairn, CBI Director-General, said:

The Chancellor is confronting a challenging balancing act deftly. As economic activity slowly speeds up, it’s essential that support schemes adapt in parallel.

Extending the furlough to avoid a June cliff-edge continues the significant efforts made already and will protect millions of jobs.

Introducing much needed flexibility is extremely welcome. It will prepare the ground for firms that are reawakening, while helping those who remain in hibernation. That’s essential as the UK economy revives step-by-step, while supporting livelihoods.

Firms will, of course, want more detail on how they will contribute to the scheme in the future and will work with government to get this right.

Above all, the path of the virus is unpredictable, and much change still lies ahead. The government must continue to keep a watchful eye on those industries and employees that remain at risk. All schemes will need to be kept under review to help minimise impacts on people’s livelihoods and keep businesses thriving.

The greater the number of good businesses saved now, the easier it will be for the economy to recover.

Further information

• the applications figure includes approved applications, those applications that are still to be processed, applications that have been declined and those applications that may turn out not to be eligible or cases where customers will decide not to proceed
• figures show cumulative applications and approvals up to close of business on 10 May 2020
• these figures include data from BBB accredited lenders shared directly with HMT by close of business on 11 May 2020

• these figures are up until 9am today

This statement concerns the application for the A38 Derby Junctions Development Consent Order made by Highways England under the Planning Act 2008, which had been submitted to the Planning Inspectorate on 23 April 2019.

Under section 98(1) of the Planning Act 2008 the examining authority appointed to examine the application must complete its examination within 6 months. Under section 98(4) the examining authority must submit its recommendation report to the Secretary of State within 3 months of its completion of the examination. The examination began on 8 October 2019 and was due to close on 8 April 2020. The recommendation report would need to be sent to the Secretary of State on or before 8 July 2020.

Under section 107(1) of the act, following receipt of the examining authority’s recommendation report, the Secretary of State must decide whether to grant development consent. A decision in this case would therefore be made on or before 8 October 2020.

Sub-sections 98(4) and 107(3) of the act give the relevant Secretary of State power to set new deadlines in respect of the above which are later than the statutory maxima. For this application,the relevant Secretary of State is the Secretary of State for Transport. In exercising this power, the Secretary of State for Transport must, amongst other things, make a statement to Parliament announcing the new deadlines.

The deadline for the completion of the examination is to be extended to 8 September 2020 (an extension of 5 months) to enable examination hearings postponed in the light of government advice concerning coronavirus (COVID-19) to be rescheduled and held in a virtual forum. Consequently, the deadline for the examining authority to submit its recommendation report to the Secretary of State for Transport is amended to 8 December 2020 and the deadline for the Secretary of State for Transport to take his decision is amended to 8 March 2021.

The decision to extend an examination under the Planning Act 2008 regime is not taken lightly and reflects the exceptional public health circumstances the country finds itself in.

The decision to set a new deadline is without prejudice to the decision on whether to grant development consent.