THE SNP have called for the UK Government to U-turn on an “irresponsible and reckless” race to wind down vital Covid support schemes.
Campaigners have warned thousands of hospitality jobs in Scotland could be at risk when the furlough scheme comes to an end next month.
Latest figures from June show the biggest group of workers claiming support were in accommodation and food services – accounting for over a fifth of the 141,500 remaining on the job retention scheme.
The total of 31,950 includes nearly 11,000 workers in Edinburgh and Glasgow alone.
Other sectors which have larger numbers still on furlough – at just under 11,500 include manufacturing, along with the categories of professional, scientific and technical roles and administration and support services.
The next biggest group includes construction at 10,900 and arts, entertainment and recreation, at 10,900.
On a visit to Scotland last week, Chancellor Rishi Sunak highlighted the figures showing 35,000 people were removed from furlough in June.
He said: “Companies are hiring again, looking forward to growing, and that all tells me our plan for jobs is working.”
But there are concerns jobs will be put at risk as the employer contribution to furlough increases from 10% to 20% of wages from today – and with the scheme planned to end completely by the end of September.
Bryan Simpson, at Unite Hospitality industrial organiser said: ”Over 30,000 hospitality workers in Scotland are still reliant on the furlough scheme to make ends meet.
“To cut-it off in September without a sector-specific safety net in place puts every one of those jobs at risk.”
He called for urgent action from both the UK and Scottish Governments to support the “uniquely precarious” status of hospitality and tourism, which was the first sector to close and the last to fully open. The SNP said it has repeatedly called on the Prime Minister and Chancellor to end the “arbitrary deadline” for furlough ending.
SNP Westminster leader Ian Blackford MP said: “It is absolutely vital that as we continue to navigate through the health crisis that Covid income support schemes remain in place for as long as is required.
“The Prime Minister and Chancellor must U-turn on their irresponsible and reckless race to prematurely cut support schemes.
“The Treasury should be looking to strengthen measures – including for the three million excluded – rather than scrap them. The impact of Covid restrictions has been significant and businesses are not fully back on their feet.”
Blackford said many businesses were still struggling from the impact of the pandemic, including dealing with staff shortages from people having to isolate after being “pinged” as a close contact of someone who has tested positive for Covid.
He added: “There has been no hesitation from the Tory government to hand out multi-million pound Covid contracts to friends, close contacts and party donors or spend hundreds of millions of pounds on a royal yacht – yet it is in a rush to end support to help hard hit households. I urge the Prime Minister to rethink his reckless plans and to keep the furlough scheme in place for as long as necessary and to extend support to the millions who have so far been left behind.”
Last October UK ministers announced the furlough scheme would be extended shortly before it was due to come to an end, leading to criticisms the delay cost jobs.
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