CHANCELLOR Rishi Sunak has been urged to extend the furlough scheme in Scotland for just a little bit longer, with the Scottish Government saying another eight months could save 61,000 jobs.
According to a new report, an extension until June would cost the Treasury £850 million. But the Scottish Government say the wider economic benefits, such as increasing GDP, would mean that it ultimately pays for itself.
Economy Secretary Fiona Hyslop said:“The UK Government must think again about withdrawing blanket support and they must urgently implement some form of extension which would continue to provide help for the sectors that have been most heavily affected.
“Extending the Job Retention Scheme for eight months would save 61,000 jobs in Scotland and help secure a stronger economic recovery from coronavirus (COVID-19). Unlike the Scottish Government, the UK Government has the borrowing powers necessary to fund the extension of the Job Retention Scheme and they must act now to protect jobs and livelihoods.
“New furlough statistics for Scotland published today show wide variation between different sectors of the economy. Even though in some sectors a significant number of people have gone back to work, the outlook is much bleaker in other sectors. In accommodation and food services an estimated 34.4% of staff were still on furlough, and this rises to 57.5% of staff in the arts, entertainment and recreation sector.
“Of course, the furlough scheme cannot continue indefinitely, but an extension would help keep people in jobs while sectors of the economy currently unable to fully open recover and will lead to sustained economic benefits at a relatively small cost.”
Other statistics released by the Scottish Government today revealed that around two thirds of firms in Scotland were still furloughing their workforce, with 15% of Scottish workers still in the scheme.
It’s a pivotal day for the Treasury-backed programme.
There are now 45 days until the Job Retention Scheme comes to and end. Under employment legislation any firm looking to make more than 100 workers redundant needs to start a consultation with workers 45 days before the first redundancy notice can be issued.
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