BUSINESSES and unions in Scotland have welcomed the extension of the job retention scheme but have called for more details on flexible working.
Chancellor Rishi Sunak announced the furlough scheme will be in place until at least October but said companies will be asked to “start sharing” the cost from the start of August.
Furloughed workers will be able to return to work part-time from that point, with employers asked to pay a percentage of their salaries.
Andrew McRae, Scotland policy chairman at the Federation of Small Businesses, said: “Today’s shrewd decisions from the Chancellor will give thousands of large and small Scottish employers the right sort of flexibility.
“The move to allow operators to partially furlough their staff while they consider how to get back up to speed should mean more businesses have the right tools at their disposal.
“In the coming weeks, smaller firms will want to understand the next steps for the scheme.
“Policymakers will need to carefully consider how to co-ordinate financial support for businesses with advice to firms about how and when to reopen safely.”
READ MORE: Chancellor extends coronavirus furlough scheme until October
Roz Foyer, general secretary of the Scottish Trades Union Congress, said: “The extension of this scheme is absolutely vital but its detail will be all-important.
“Being able to use the scheme to support phased return to work through reduced hours is also an important step.”
She added: “However, we have seen some major companies announcing redundancies over recent days. There must be nothing in the amended scheme that exacerbates this problem, which is causing misery for thousands of workers.
“There are still millions of workers who have not been helped by the scheme to date and they will be in increasingly dire straits.
“We renew our call to the Chancellor to close the gaps in the scheme.”
At her daily briefing yesterday, First Minister Nicola Sturgeon gave a cautious welcome to the scheme, saying: “I haven’t seen the full details yet but I certainly welcome that extension.”
She added “we have to avoid cliff-edges”.
The co-leader of the Scottish Greens, Patrick Harvie, welcomed the “huge U-turn” by the Chancellor but raised concerns that the drop to 60% furlough pay in September would result in more households struggling to make ends meet.
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