BUSINESSES have heaved a sigh of relief after Chancellor Rishi Sunak announced an extension of the furlough scheme which has supported 7.5 million workers.

Mr Sunak revealed the scheme, which pays 80 per cent of a worker’s salary up to a £2,500 monthly cap, will be extended until the end of October.

Speaking as the UK death toll linked to Covid-19 passed 40,000, Mr Sunak said the scheme would be unchanged until the end of July and then continue with employers expected to start footing some of the multi-billion pound bill.

David Burch, director of policy at Essex Chambers of Commerce, said “With many businesses still experiencing some uncertainty over the future this is a very welcome decision by the Chancellor and will go a long way to helping keep them trading.

“The decision to allow employers to bring staff back part time will make the task of re-starting those businesses that had to shut down altogether an easier prospect whilst employees will also find it a help in getting back into their routines after possibly several weeks away from the workplace.”

Adventure Island boss Philip Miller welcomed the announcement, adding: “The Chancellor has got it right with these announcements.

“I hope the Prime Minister sticks to his guns by encouraging the country to open for business.

“We were in danger of becoming a nation of Covid-Zealots using the fear factor to keep everything closed.

“It is now accepted the cure will be far worse than the illness, if all we are left with at the end of it is millions and millions of starving people on the dole.

“The most vulnerable in society are either self-isolating or shielding, maybe it’s time for the rest of us to restart our lives while there is still something worth getting up in the morning for.”

Suzanne Gloyne, manager of Southend Business Improvement District – which represents Southend town centre traders added: “Many businesses will not be opening for at least two more months and so this announcement provides those firms and their employees with reassurance.

“It will also reassure businesses that will be able to start re-opening as part of the phased, and conditional, plan set out by the Government.

“The flexible nature of the plan will help those places that will need staff when they start opening but not on a full-time basis due to physical distancing and safety measures that will reduce capacities for workers and customers. “