Rishi Sunak set to cut jobs tax and bring back £1,000 cash bonus for bosses that unfurlough staff


RISHI Sunak wants to coax bosses into a hiring spree with his Budget next month.

He is considering cutting the jobs tax and bringing back a £1,000 bonus for those that unfurlough staff.

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Chancellor Rishi Sunak wants to encourage bosses into a hiring spree with next month's Budget

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Chancellor Rishi Sunak wants to encourage bosses into a hiring spree with next month’s BudgetCredit: Reuters

The Chancellor hopes he can wean employers off state support as shops, pubs and other businesses gradually reopen.

A source said: “The Treasury is keen to support jobs rather than businesses.”

One idea being looked at for the March 3 Budget is cutting the national insurance contributions employers pay for staff.

Businesses have long warned that the punishing jobs tax puts them off hiring.

Another idea being considered is bringing back the £1,000 bung to bosses for every worker they bring back from furlough.

The job retention bonus scheme was brought in last year.

But it was shelved when fresh lockdown was imposed and furlough brought back.

Announcing the decision in November, Mr Sunak said: “We will redeploy a retention incentive at the appropriate time.”

One source familiar with Budget discussions said: “It is definitely an option. It is plausible they will do either NICs or the job retention bonus.”

No final decisions will be made on the Budget until Boris Johnson unveils his road map out of lockdown next Monday

Rishi Sunak announces that the UK economy shrank by 9.9% under coronavirus lockdown





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