U.K. government expands wage subsidies to help businesses hit by COVID

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U.K. government expands wage subsidies to help businesses hit by COVID
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The government will cover two-thirds of workers' wages for those companies who are legally obliged to shut for a period of time as part of local or national restrictions COVID-19 restrictions.

British Chancellor Rishi Sunak has set out an extension to wage subsidies for employees of businesses that have been forced to close down under new COVID-19 restrictions.

The scheme will see the government cover 67 percent of employees' salaries and will begin on November 1. It will be available for a period of six months and will be capped to a maximum of £2,100 a month. The government's furlough scheme, which saw it pay businesses cash grants of 80 percent of the wages of furloughed workers, up to a maximum of £2,500 per month, will end on October 31. It was credited with preventing a sharp rise in unemployment as businesses were ordered to shut during the nationwide lockdown.

There are fears that the government could be considering tougher restrictions in a bid to stop the speed of the virus, leading to condemnation by city mayors who have criticized the government for failing to consult with them.Getty Images/Leon Neal"Millions of lives affected by Whitehall diktat.

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