Boris Johnson at risk of ‘squeezing jobs’ unless he gives up on plans to step down

Boris Johnson will cause a cut in jobs unless he abandons plans to water down support for leave this weekend, Labor have warned.

Labor leader Keir Starmer called on Chancellor Rishi Sunak to make the program more flexible – or risk making a historic mistake.

From today, employers will have to pay national insurance and pension contributions for their staff.

And in September, companies will have to pay 10% of the wages of employees on leave, which will rise to 20% in October.

Workers say that will add up to about 550 on average for every employee on leave over the next three months.

And some businesses, like nightclubs and software game centers, will have to foot the bill even though they’re banned from opening under lockdown rules and don’t have a reopening date.

Labor analysis of official figures suggests the overnight economy – which has 520,000 workers on leave, faces a bill of $ 285 million just to keep staff on the books for the next three months.

Indoor gaming companies will need to suffer a blow of nearly $ 10 million to keep 18,000 workers on leave.

And the exhibitions, trade fairs and events sector will have to pay nearly 22 million in employee contributions for 40,000 employees.

Labor is calling on the government to drop plans to end support for leave and keep existing rules in place for struggling industries.

On a visit to Peterborough to launch Labor’s national campaign for jobs, Sir Keir said: “Government support starts to be withdrawn tomorrow.

“We are really worried about the withdrawal of all companies and sectors at the same time when it is clear that some companies and certain sectors need more support.

“So we say to focus on jobs, it’s not too late to take a more flexible approach.

“If you end all support for all businesses the same way, we will lose jobs.

“The government doesn’t want this, I don’t want it.

“But just for the government to say it’s just too difficult is not enough.”

Ed Miliband, shadow secretary of state for business, energy and industrial strategy, said: “Many companies still have little or no cash, but are trying to do the right thing and save money. jobs of their employees.

They are now faced with the difficult choice of either letting their staff go or facing a heavy financial burden to keep them.

Companies from very different industries and circumstances should not be treated in this uniform manner, and it is manifestly unfair and illogical for employers who are still stranded and unable to trade.

Mr Miliband added: Unless ministers recognize the scale of the jobs crisis and change course, they will force employers to make cuts and be guilty of thousands of workers across the country who will lose their jobs and their livelihoods.

A government source said the support provided under the leave program is “comprehensive and generous”.

They said: “This government has worked tirelessly during this crisis to protect jobs, livelihoods and businesses.

“At every step, we have acted at scale and at the pace to ensure that as many people as possible are supported during this difficult time.

“The leave program is unprecedented and has so far supported the salaries of 9.5 million people, at a cost of 31.7 billion and will last eight months in total.

“This is not a ‘one size fits all’ policy, it is the most comprehensive and generous version of support that can be provided.”

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