NICOLA Sturgeon has issued a joint warning with one of Scotland’s top entrepreneurs that the UK Government’s new furlough plans will lead to a “tsunami” of job losses.
The First Minister held talks with BrewDog co-founder James Watt, who said the Chancellor’s updated Job Support Scheme is totally insufficient.
Rishi Sunak revealed last week that as of November 1, the Treasury will pay two-thirds of workers’ wages in hospitality firms ordered to close their doors as part of coronavirus restrictions. It will be implemented as the original furlough scheme comes to an end.
The Scottish Government had repeatedly urged Tory ministers to extend the original scheme, and now say the replacement will do little to stave off an economic crisis.
READ MORE: Covid not 'out of control' in Scotland, Nicola Sturgeon says
In a post which was shared by Sturgeon, Watt wrote: “Just had a good call with @NicolaSturgeon discussing protecting jobs in hospitality.
“We both agree that the end of the Job Retention Scheme will lead to a tsunami of unemployment & we would urge @RishiSunak to extend it.
“The proposed 'Job Support Scheme' will not protect jobs.”
Just had a good call with @NicolaSturgeon discussing protecting jobs in hospitality.
— James Watt (@BrewDogJames) October 13, 2020
We both agree that the end of the Job Retention Scheme will lead to a tsunami of unemployment & we would urge @RishiSunak to extend it.
The proposed 'Job Support Scheme' will not protect jobs.
The intervention came after a new report by the Office for National Statistics showed employment in Scotland rose by 0.4% in the last quarter. However, the study also showed the unemployment rate remained unchanged at 4.5%.
Speaking at the Scottish Government’s daily briefing, Sturgeon said that the figures would be much worse had there not been support in place from the Scottish and UK governments.
"The UK Government's Job Retention Scheme in particular has been really important and of course we still have concerns that the replacement for that scheme which will take effect at the start of November is not comprehensive enough,” she stated. "That could lead to a significant rise in unemployment, including in jobs in sectors that, while they may be struggling through Covid, have a good long future.
"The Scottish Government will of course continue to make that case to the UK Government, but just as importantly, we will also continue to provide our own support whenever we have the powers and resources to do so."
READ MORE: Scotland's employment rate increases between June and August
SNP Westminster leader Ian Blackford urged Sunak and Prime Minister Boris Johnson to heed the warnings.
Responding to Watt, he tweeted: “Are you listening @RishiSunak and @BorisJohnson? Just think about the problems that a mass rise in unemployment will bring. You can mitigate this and retain capacity in the economy for recovery.”
Announcing the scheme, Sunak insisted he would implement all necessary measures to stave off redundancies.
He said: “Throughout the crisis the driving force of our economic policy has not changed. I have always said that we will do whatever is necessary to protect jobs and livelihoods as the situation evolves.
“The expansion of the Job Support Scheme will provide a safety net for businesses across the UK who are required to temporarily close their doors, giving them the right support at the right time.”
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