A leading businessman from Sutton Coldfield has criticised the Chancellor for scrapping the Job Retention Bonus (JRB) because it leaves a gap in his cash flow.
Speaking in the House of Commons, Rishi Sunak announced a range economic measures to support business through the winter, but also declared that the JRB scheme would end.
It would have provided businesses with a £1,000 bonus for every furloughed employee it had retained in January 2021.
Nigel Waldron (pictured), managing director of Power Minerals and former president of the Sutton Coldfield Chamber of Commerce, said that the Chancellor's decision to end the scheme has now left a gap in his business' cash flow.
He said: "My company bought all of its furloughed staff back at the beginning of September and the Job Retention Award was one of the reasons we chose to do this.
"The £10,000 we are not getting leaves a gap in our cash flow and I am struggling to see how we are going to make up the difference when the economy has still not got back on its feet.
"The mental effect of furloughing people seems to be ignored and although its a tough pill to take I will not take any further part in the scheme even though its an easy option."
Mr Waldron also commented that the Chancellor did not go far enough with the furlough scheme, and said more targeted measures should have been put in place.
He added: "I was disappointed with the Chancellor’s announcement regarding the furlough scheme. It should have been targeted at the retail, leisure and hospitality industry - businesses that really need the support. The blanket approach adopted will tempt companies to use the scheme when they really don’t need to."
