Derry Chamber President Redmond McFadden says Rishi Sunak's COVID-19 jobs war chest will save jobs

Mr. Sunak announced on Friday a new Coronavirus Job Retention Scheme will be set up to help pay people’s wages.

Employers will be able to contact HMRC for a grant to cover most of the wages of their workforce who remain on payroll but are temporarily not working during the coronavirus outbreak.

Any employer in the UK, small or large, charitable or non-profit will be eligible for the scheme.

Mr. McFadden said: "This is a very welcome intervention by the UK Government which will help alleviate the stress and pressure on businesses and workers across the country.

"The Coronavirus Job Retention Scheme will help ease cash flow worries on businesses, large and small, by covering 80% of salaries up to £2500. It is excellent news that this will be backdated to 1 March and that there will be no limit to the amount of funding provided by the Treasury.

"The Chancellor’s message to the business community this afternoon was clear – do not permanently lay off your workers just yet.

"All furloughed and temporarily laid-off workers who are still on the pay roll will be eligible for this grant.

"This is an announcement which will ensure thousands of local workers will continue to be able to sustain their households, provide for themselves and their families, and will have a job to return to once this crisis is over."

Mr. Sunak further said that in order to ease cash flow pressures for UK VAT registered businesses, VAT bills from now until the end of June, will be deferred until the end of the tax year.

Universal Credit and tax credits will also be increased as part of an almost £7 billion welfare boost.

Mr. McFadden said: "Additional measures concerning the deferral of VAT payments until the end of June, extending the interest-free period of the Business Coronavirus Interruption loans from six months to twelve months, and allowing self-employed people access to Universal Credit are also good news for businesses and are common sense approaches to this emergency.

“During this period of extreme uncertainty and upheaval, supportive measures like these will help prevent the local economy from collapse, relieve the concerns of workers and businesses alike, and help preserve tens of thousands of jobs.

“The Chamber is ready to assist those businesses who need support and guidance during this time and we urge them to contact us if they need clarity on the measures that have been announced.”

Stephen Kelly, Chief Executive of Manufacturing NI, said: "Well, the distress flares went up and we asked for the lifeboats to be launched and the Chancellor has just arrived with the most extraordinary economic intervention to end what has undoubtedly been one of the most stressful weeks of all our lives."

The manufacturers' lobbyist said he would consider Mr. Sunak's proposals in detail over the weekend.

"We will spend the weekend seeking the detail and making a full assessment of what all this means," said Mr. Kelly.

The British Government has also instructed entertainment and hospitality premises, like bars and restaurants, to close from tonight to limit spread of coronavirus.

Most bars in Derry have been closed since last weekend.

Colin Neill, Chief Executive, Hospitality Ulster said: “We welcome the direction by the Prime Minister on closures. It’s not an easy thing to accept, but now we know where we stand and can start the process of full close from tonight.

“We also welcome the suite of financial interventions that has been announced by the Chancellor which includes the new Coronavirus Job Retention Scheme that will be made available to any business with no limit on this fund. We now need to make sure that this emergency financial measure gets to our people as quickly as possible.”