RISHI Sunak has been warned that without an immediate extension to the furlough scheme he increases the risk of mass redundancies.
The Chancellor is due in Scotland today on what the SNP claimed was a “flying visit”. But the trip comes at the end of a brutal week for British workers.
Around 10,000 job losses have been announced in the last seven days, with firms including WH Smith, Pizza Express, Hays Travel, Dixons Carphone Warehouse, M&Co, LGH, DW Sports, Aecom, Prestwick Airport, William Hill and Sodexo all planning Covid-related redundancies.
The SNP Westminster leader Ian Blackford said one thing Sunak could do to prevent more job losses – especially in Scotland’s beleaguered tourism industry – would be to extend the furlough scheme beyond its October end date.
He said: “Cutting the furlough scheme prematurely is a grave mistake. By removing this crucial support in the middle of a global pandemic, and withholding the financial powers Scotland needs for a strong recovery, the Tories are increasing the risk of mass redundancies.
“Businesses, trade unions and economic experts are warning that too little is being done to protect jobs. I urge the Chancellor to think again, extend the furlough scheme into 2021 and devolve the powers Scotland needs to respond to this unprecedented crisis.
“Without these powers Scotland will be left with one hand tied behind its back – unable to stem the tide of job losses or prevent good businesses going under. Other countries are taking action for an investment-led recovery but yet again Scotland is being held back by Westminster.”
Blackford said the twin threats of Brexit and “Westminster inaction” said meant the “only way to properly protect Scotland’s interests is to become an independent country”.
Ahead of Sunak’s visit, the Treasury revealed that 29% of all Scottish employees had been furloughed, while another 155,000 people had been supported through the self-employment scheme.
UK Government-supported loan schemes worth around £2.3 billion had been successfully applied for by more than 65,000 businesses in Scotland.
In a short statement ahead of the visit, Sunak said: “I’m proud that we have supported more than 65,000 businesses in Scotland through our loan schemes, and we are committed to continuing to support them to bounce back and succeed through the measures set out in our Plan for Jobs.”
Scottish Secretary Alister Jack went further. He said: “The UK Government is doing all it can to help Scotland’s economy through this pandemic and providing more than £2.3bn in loans to 65,000 Scottish businesses is a key part of this.
“We are also supporting almost 900,000 jobs in Scotland through the pioneering furlough and self-employed schemes.
“This comes on top of an additional £6.5bn funding for the Scottish Government to spend on public services and further support businesses in Scotland.”
He continued: “The UK Government is working hard to help our economy bounce back and we want to see all sectors open again where it is safe to do so.”
The SNP also called on Sunak to address new analysis by Warwick University that Scotland is £3.94bn poorer because of Brexit – the equivalent of £736 per person.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel