Business owners in the Harrogate district have welcomed an extension to the furlough scheme which they say will help to save jobs.
Chancellor Rishi Sunak announced that the scheme, which covers 80% of employee salaries, will be extended until September this year.
Mr Sunak also confirmed that a business rates holiday will be extended until June, as well as a 5% VAT reduction for the hospitality and tourism sectors for six months.
An extra £5 billion worth of grants for high street shops and hospitality have also been announced. It will see pubs and hotels able to bid for £18,000 worth of funding.
Peter Banks, managing director of Rudding Park Hotel and Spa, said he was pleased with the extension to the furlough scheme.
He said:
“I’m delighted with that because it will be flexible furlough and it will mean that we do not have to carry that wage bill if we do not have customers.
“It means that my team will still be able to pay their mortgages. We are lucky that we as a business have more fat on our back, but there are lots who live hand to mouth.”
Elsewhere in his budget, Mr Sunak announced a further £400 million financial support for the arts.
The money will be added to the government’s Culture Recovery Fund, which has already awarded £800 million in grants to theatres, museums and music venues.
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Ripon Cathedral, Harrogate Theatre, the Deer Shed Festival, Ripon Museum Trust and Ripon Amateur Operatic Society are among the local beneficiaries of the fund so far.
David Bown, chief executive of the Harrogate Theatre, said he was pleased with the announcements on furlough and arts funding.
However, he added that more detail was required on the schemes.
He said:
“The furlough scheme will allow us to bring staff back in a measured way when we have got the details on when we can reopen.
“The funding for the arts is great news, but again we will have to find out the detail on the criteria and how we can access that.”
Sharon Canavar, chief executive of Harrogate International Festival, agreed the “devil would be in the detail”.
She said:
“The items that would affect us are the fourth and fifth grants. It is great that people in the arts are being recognised, especially those who may have missed out previously because of the way their business is set up.
“The devil will be in the detail, particularly for our industry, given all the unknowns on the reopening.”
