As the Bank of England revises down its unemployment estimate, the Chancellor has a dilemma in choosing between Job Retention, and job creation.
Any extension of the Job Retention Scheme (JRS) should be in a targeted manner and focus on specific sectors including seasonal businesses for which this sort of approach is critical if they are to survive.
‘Carte blanche’ measures allow both the strong and the weak to survive a little longer and delays the inevitable, which is not healthy for the economy.
However, for those businesses that were successful but seasonal in nature, and for which the spring and summer is the key trading period, the Chancellor needs to think hard about further support that will ensure businesses can sustain themselves through the winter months and emerge next spring.
Targeted support to sustain viable business alongside job creation policies are the best route available to keep unemployment rates as low as possible.