Primark has said that they will not take advantage of the £30 million handout from the government which potentially puts pressure on other business firms not to take taxpayer money.Chancellor Rishi Sunak announced last week that all business would receive £1000for each employees to bring back employees from a furloughed phase. Primark employees around 30,000 employees that were eligible for the government’s coronavirus retention scheme.
However, they quote that they will bring back the furloughed employees without the government’s help. “The company removed its employees from government employment support schemes in the UK and Europe in line with the reopening of the majority of its stores,” said a spokesperson for Primark’s owner Associated British Foods.
“The company believes it should not be necessary therefore to apply for payment under the bonus scheme on current circumstances.”
Mr. Sunak announced the Job Retention Bonus in last week’s Summer economic update, Mr. Sunak said, “One of the most important things we can do to prevent unemployment is to get as many people as possible from furlough back to their jobs.” Companies were eligible to a £1,000 per person bonus that they can bring back their employees which were under a financial siege for three months after the government’s wage payment scheme ended in October.
Currently, the government hosts 9.4 million people on the government’s furlough scheme who if all returned to work at a single stretch would cost the latter £9 in bonus payments. Mr. Sunak has quoted that the current scheme will be open to all companies.
However, the Labour Party Leader Sir Keir Starmer criticized the scheme for not being targeted on those companies who needed it the most.
While Primark’s move to decline the government handout for an economic revival seems heroic, the ball is now passed on to another firms in the same space whether to follow in the similar footsteps or take on the economic handout.