Former Dragons’ Den star James Caan warns staff face ‘Bloody Sunday’ of job cuts when furlough scheme ends
James Caan, the recruitment entrepreneur and former star of Dragons’ Den, has warned staff face a ‘Bloody Sunday’ of job cuts when the furlough scheme ends on November 1.
He warned unemployment will rise to ‘uncomfortable ranges’ – and criticised Rishi Sunak’s measures to maintain employees in work at corporations hit by lockdown restrictions.
The furlough scheme, which supported 9 million staff by way of the summer season, will probably be changed in two weeks by the a lot much less beneficiant Job Help Scheme.
Jobs caan-age: The previous dragon warned unemployment will rise to ‘uncomfortable ranges’
Below furlough, the Authorities paid as much as 80 per cent of wages. The brand new scheme can pay as much as a 3rd of hours ‘not labored’ by employees – in principle incentivising corporations to maintain workers on part-time.
However a YouGov ballot of 1,000 corporations revealed simply 18 per cent plan to make use of the Job Help Scheme, whereas solely 6 per cent stated the scheme would stop job cuts.
Caan stated the economic system ‘will worsen earlier than it will get higher’.
He stated of the top of the furlough scheme: ‘They’re calling it Bloody Sunday. I applaud the Authorities for every little thing they’ve tried. However they did not actually remedy the issue. They only delayed it.
‘Individuals went on furlough as a result of demand fell off a cliff and it nonetheless hasn’t picked up. I’ve labored in employment for 35 years and I am in contact with employers each day. There is no such thing as a query in my thoughts the jobless quantity will rise at a really uncomfortable stage.’
Stuart Pringle, managing director of Silverstone, stated for a lot of corporations in hospitality the job scheme ‘doesn’t work’. The Method 1 racetrack is in disaster after spectators had been banned and company occasions collapsed.
He stated: ‘We simply should not have the enterprise to maintain folks employed. We furloughed 100 of 150 workers and can lose a 3rd of these on furlough. We’re on the level the place we’d like an emergency grant.’