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ACE News

12 MAY 2020

CHANCELLOR'S EXTENSION OF FURLOUGH SCHEME

ACE led the construction industry taskforce to propose changes

ACE has welcomed the announcement by the Chancellor today that he is extending the current Government furlough scheme until the end of October as this will be a significant contribution to restoring confidence to the Construction Sector.

ACE led the construction industry taskforce that proposed the changes to the furlough scheme that the Chancellor has announced today as it was clear that a significant part of the construction industry was dependent on the current scheme. A survey of the industry found that 84% of the industry was using the scheme with 48% of companies furloughing more than 50% of staff.

80% of the industry stated that the decline in work volumes had forced them to furlough large numbers of staff and that without the Government's support they would be faced with the prospect of having to make large scale redundancies.

Although the scheme will continue, the Chancellor will look to industry to help with the cost of 80% of an employees earnings and plans to make the scheme more flexibility allowing employees to continue to work while on the scheme. This change will allow employers to develop their corporate plans while protecting jobs and allowing the Government access to the skills and talent it needs to deliver it domestic's agenda.

Commenting on this announcement Hannah Vickers, chief executive of the Association for Consultancy and Engineering said:

"I am delighted that the Chancellor has agreed to extend and introduce flexibility to the furlough scheme as proposed by the Construction Leadership Council and ACE on behalf of the industry as this will provide confidence to both employers and workers that they will no longer face a cliff edge in June. This new part-time furloughing scheme is in everyone's interests as it allows companies to bring back more staff on a rota and prevent steep cuts to employment while limiting the cost to the taxpayer. We will await the full details of how the scheme will be implemented in due course but it’s the right headline commitment from the Government."

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