Businesses have welcomed news the Government’s furlough scheme will be extended until October.

Chancellor Rishi Sunak announced the extension of the job retention scheme yesterday.

Dianne Irving, who runs a chain of four pubs and currently has around 50 staff on furlough, said she was very pleased with the news.

She runs the Howard Arms in Carlisle city centre, the Crown Inn at Stanwix and the White Mare Hotel and restaurant in Beckermet.

As the coronavirus shutdown hit, she was also preparing to open the Milbourne Arms, in Carlisle’s Shaddongate.

“We were thinking that once we got to the middle or end of July then we would be really struggling,” she said. “But the extending of the furlough means our staff are safe and going to be looked after.”

Employers currently using the scheme will be able to bring furloughed employees back part-time from August. The Government will also ask employers to start sharing the costs of paying people’s salaries.

Sara Young, director of CBA Events in Keswick, said the move brought some security for the future.

However, she said the business still faced a lot of uncertainty as it organised conferences and events at hotels and other venues.

“I understand there will be some shared responsibility with the employer, but unless we are able to be operational and have some money coming in it is still going to be a challenge,” she said.

Dave Farrell, chair of the Cleator Moor Chamber of Trade, welcomed the provision for those working part-time.

“It gives a bit of breathing space and perhaps it’s an incentive for employers to get people back,” he said.

Cumbria Chamber of Commerce said the extension would protect thousands of jobs.