The Labour Party and enterprise teams have voiced concern on the “ripple impact” of Covid shutdowns which might be anticipated to be introduced on Monday.
On Friday, the chancellor mentioned employees at UK corporations advised to shut would get 67% of their wages from the federal government underneath the expanded Job Support Scheme.
But no particular assist was introduced for staff who could also be not directly affected – for instance, these in provide chains.
The Treasury denied corporations that aren’t absolutely closed wouldn’t obtain assist.
Labour claims shut to 1 million staff shall be in danger, together with 500,000 individuals within the marriage ceremony business, 369,000 within the sports activities business, and 142,000 occasion caterers.
Shadow enterprise secretary Ed Miliband mentioned: “There are large holes within the new security web.”
A spokesperson for the Treasury mentioned: “We don’t recognise these figures,” including that Labour had “incorrectly” listed some sectors as not benefitting from the scheme.
The spokesperson added: “Companies which might be open can use the opposite component of the Job Support Scheme which is geared toward these in a position to open however at decrease ranges of demand.
“And in fact they’ll additionally entry the opposite assist we have now made accessible, together with billions of kilos of grants, loans and tax cuts.”
The Job Support Scheme was announced by Mr Sunak on 24 September and can change the “furlough” scheme from 1 November for six months.
It “tops up” the wages of workers who cannot work their regular hours.
The expanded scheme, introduced on Friday and accessible to corporations ordered to close down, will present two-thirds of wages to workers unable to work.
On Monday, Boris Johnson is anticipated to announce a tiered system of measures for England in an effort to stall rising an infection charges.
Under the brand new system, totally different elements of the nation can be positioned in one in all three classes.
The worst-affected areas – which can embody a lot of northern England – may see its pubs and eating places closed.
Shadow Business Secretary Ed Miliband claimed the federal government had been “compelled right into a climbdown” over supporting shut-down companies.
But he mentioned companies together with weddings, theatres, cinemas, occasions, and plenty of suppliers can be not noted “on a technicality” as a result of they’ve been “compelled to close in all however title”, he mentioned.
Mr Miliband added: “Ministers should urgently rethink their damaging sink or swim method which consigns complete sectors of our financial system to the scrapheap.”
Roger Barker, Director of Policy on the Institute of Directors mentioned the brand new measures set out by the chancellor on Friday had been a “helpful step” in direction of supporting companies affected by the lockdown.
But he mentioned their affect can be restricted as a result of they “do not account for the ripple results of restrictions throughout the financial system”.
He added: “It is turning into more and more clear that the chancellor’s earlier technique of phasing out enterprise assist and permitting supposedly ‘unviable’ corporations to fail was untimely within the face of a resurgent virus.
“Friday’s measures ought to be seen as the beginning of renewed efforts to maintain the survival of corporations and jobs if long-term harm to the financial system is to be prevented.”
Adam Marshall, Director General of the British Chamber of Commerce, additionally mentioned the brand new assist didn’t go far sufficient to guard corporations in provide chains and city and metropolis centres and urged: “Their money move considerations and worries about future demand should be heeded.”