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<p>From 1 July 2021, employers will be asked to make a small contribution of ten per
cent of wages for hours not worked, as announced at Spring Budget when the scheme
was extended to the end of September.</p><p> </p><p>This is the same approach that
the Government introduced last summer, where comparable restrictions were in place.
It is right to continue with the existing timetable to reintroduce employer contributions,
in order to strike the right balance between supporting the economy as it opens up
and ensuring incentives are in place to get people back to work as demand returns.
The labour market is also in a stronger position, with 5.5 million fewer people on
furlough than in April 2020, and online job vacancy levels in mid-June about 27 per
cent above February 2020 levels.</p><p> </p><p>At March Budget 2021, the Government
deliberately went long and erred on the side of generosity; specifically to accommodate
short delays to the roadmap, such as this. Most of the Government’s schemes do not
end until September or after, in order to provide continuity and certainty for businesses
and families.</p><p> </p><p>Businesses that have legally remained closed or effectively
cannot operate can continue to benefit from the Government’s £2 billion of discretionary
grant funding for local authorities in England, a UK-wide recovery loan scheme, business
rates relief, enhanced Time to Pay for taxes, and support for paying deferred VAT.
These businesses will also have recently benefitted from Restart Grants of up to £18,000
and the £25 billion grant support that has been made available throughout the pandemic.</p><p>
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