by Kate Hindmarch, partner in Employment Law at Langleys Solicitors

While full lockdown restrictions are set to last till at least the end of March, all eyes are on the annual budget announcement, today, that will set out what support is to be offered to both businesses and their employee, with the furlough scheme expected to be extended until September.

Speaking on the topic, Kate Hindmarch said:

“While the extension of the furlough scheme is very welcome for many thousands of businesses and their employees, some employees now face the prospect of having been away from the workplace for 18 months. While the initial position of being off work on 80% pay might have been a novelty, employers may face real difficulties in reintegrating and reskilling their workforce.

“There will also be worries of rebuilding a sense of team within many businesses which are not suited to at-home working, or that have struggled to keep up a feeling of togetherness and morale during the almost 12 months of enforced working from home restrictions.

“The government’s roadmap guarantees restrictions on leisure and hospitality are to stay in place until at least April, however the extension should go some way to securing jobs in these sectors. Our recent Back to Business? Report revealed that a third

of businesses are planning some form of restructuring to help them recover from the pandemic, and encouragingly, almost a third of businesses are planning to hire more people to help them recover from the effects of the last 12 months.

“Additionally, our research found 33% of businesses would also like to see a reduction or freeze of business rates, and the extension of the government’s VAT reduction. Both of these schemes have enabled the retail and hospitality sectors, which were disproportionately affected by lockdown restrictions, to stay afloat while being forced to close their doors.

“There are still a number of months before restrictions ease further, and undoubtedly further hurdles for businesses to overcome during the pandemic, however with the additional government support many businesses will have a greater ability to adapt and thrive throughout the rest of the year.”