FURLOUGH cash for Scotland may only be available "for the duration of a lockdown in England," the Finance Secretary Kate Forbes has warned.
The Scottish minister held talks with the Treasury yesterday after Boris Johnson's surprise announcement that the scheme, which pays 80% of workers' wages, was to be extended until December 2.
The Prime Minister pushed the programme's final day back on Saturday night, after he announced plans to place England into a four-week lockdown.
What made the decision so surprising was that for weeks now, devolved governments and Northern English regional mayors have been pleading for an extension to the scheme because of the extra Covid restrictions they've needed to put in place.
But it was seemingly only when England as a whole needed to go back into lockdown that Johnson agreed to delay the end date.
Following the announcement, the Scottish Government called for "urgent clarity".
They wanted to know if the 80% furlough scheme would be available to Scotland if Nicola Sturgeon was forced to introduce stricter restrictions at some point in the future, or would it only be available for the duration of the English lockdown.
Yesterday morning, John Swinney told the BBC’s Sunday Politics Scotland programme: “What we need to know is the circumstances in which furlough payments are going to be available. Are they only going to be available when England’s got a problem or are they going to be available at all times in all parts of the United Kingdom?”
He said if furlough payments were only available in the short term, then the Government “could deploy that to ensure that some industries that are facing significant restrictions ... are supported through this difficult time”.
Swinney added: “Or, alternatively, if furlough is to be available to any government within the United Kingdom at any point where restrictions will need to be applied, then that gives us the flexibility should our level system need to be intensified in the weeks to come.”
Speaking after talks with the Treasury yesterday evening, Kate Forbes said she still had many questions unanswered.
“Despite discussions today, UK Treasury continue to deny our request that full furlough at 80% be made available for businesses and employees in Scotland at any point we need it, suggesting that it is only available for the duration of a lockdown in England.
"While clarity that it will be available to businesses whether open or closed is welcome, the lateness of the announcement means many businesses have already taken devastating decisions."
She said the government still did not know if they'd receive Barnett consequentials "as a result of increased UK support for English local government" and "whether the unlimited payments for business support in England funded by Treasury borrowing, will be made available on a similar demand-led basis to enable the Scottish Government to match that long term commitment."
The Finance Secretary said the Scottish Government had requested further, urgent discussions with counterparts in Whitehall.
The Treasury snub is embarrassing for Scottish Tory leader Douglas Ross.
He's due to give a speech this morning calling for a degree of flexibility from his colleagues.
In an address to the Policy Exchange, he is set to say that as well as being a “lifeline” for hundreds of thousands of Scottish jobs, the furlough scheme has also been a “real and tangible reminder of the economic security of the Union” between Scotland and the rest of the UK.
He will add: “Now that the scheme has been extended to cover the impact of a second lockdown in England, how could a Unionist government not restart the scheme if a second lockdown is required in Scotland?
“We all hope that by following the guidance and doing the right thing, a second Scottish lockdown will not be necessary.
“But if it is, the UK Government must treat Scotland the same way as England. That guarantee has to be made immediately.”
A Treasury spokesman said: “Mr Ross is right that this crisis has underlined the importance of the Union.
“Our extension of the furlough scheme until December is just one part of our £200 billion support package, which has protected jobs and helped millions of people across the UK continue to provide for their families."
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