Chancellor: Isle Of Wight Businesses Will Contribute To Salaries From September

Saturday, 30 May 2020 12:15

Businesses will start paying National Insurance and tax contributions in August, before taking on 10 per cent of salaries in September and 20 per cent in October, the chancellor has confirmed.

From September businesses will be asked to pay 10% of workers' salaries but Rishi Sunak said the self-employment income scheme will be extended.

It comes as The Institute of Directors warned one in four of their members won't be able to afford to contribute to the government's furlough scheme.

The Government scheme has been helping firms keep employees on the payroll by covering 80 per cent of salaries - up to two-and-a-half thousand pounds a month.

Speaking at the daily news conference, Rishi Sunak said:

"The furlough scheme cannot continue indefinitely but will remain open until October...The Government is introducing a more flexible furlough scheme in July to kick-start the economy...

"I believe it is right in the final phase of this eight month scheme to ask employers to contribute alongside the taxpayer towards the wages of their staff- but pay only a modest contribution introduced slowly over the coming months."

In June and July there will be no employer contribution. By September, employers will be asked to pay 10% and 20% in October - then the scheme will close.

Earlier today, 113 MPs signed a letter calling for the self-employed scheme - which ends this weekend - to be extended - which Mr Sunak confirmed today.

The MP for the Isle of Wight Bob Seely has welcomed the news and posted on Twitter:

I'm delighted @RishiSunak has announced that furlough flexibility will start earlier, on 1st July. Also a cautious approach re the employer contribution, to incentivise businesses to re-open. This responds to points I raised with the Chancellor on behalf of #IsleofWight. #iwnews https://t.co/ecWXGiAReh

— Bob Seely MP (@IoWBobSeely) May 29, 2020

38,161 people have now died from coronavirus - 324 fatalities since yesterday (Thursday).