Covid in Scotland: Business leaders welcome furlough extension
- Published
Scottish business leaders have said the extension of the furlough scheme has given firms a "glimmer of hope" that they can survive the Covid-19 crisis.
Chancellor Rishi Sunak said the UK government would continue to pay up to 80% of a person's wage, to a maximum of £2,500, until the end of March.
The Federation of Small Businesses said the announcement was the "right move" and would "save Scottish jobs".
The Scottish Chambers of Commerce also welcomed the chancellor's statement.
Its chief executive, Dr Liz Cameron, said: "This announcement gives Scottish businesses a glimmer of hope that we may be able to survive and work through this crisis."
However, Dr Cameron said there had to be movement towards reopening the economy and warned that furlough alone would not be enough to save many businesses.
She added: "The chancellor must continue and expand his commitment to providing businesses with guaranteed grants support to help businesses recover.
"The Scottish government should continue to follow an evidence-led approach and work in partnership with industry before applying additional, harsher economic restrictions.
"That also means expanding test and trace capability, which is a key enabler to keeping the economy open."
Scottish Licensed Trade Association spokesman Paul Waterson said the announcement gave a "glimmer of hope".
'Eleventh hour'
He added: "However, let us not lose sight of the fact that direct support for businesses is still woefully inadequate and unless this is increased substantially, there is still the threat of business failure leading to the loss of thousands of jobs and jeopardising the intentions of the chancellor's extended support package announced today to save jobs.
"The announcement today will give the industry a bit of a breathing space, but the government needs to plan ahead and give industries much earlier indications of what support will be available rather than making announcements at the eleventh hour."
Marc Crothall, chief executive of the Scottish Tourism Alliance, said the furlough extension would be a "huge relief" to the sector, but would not be enough on its own to help it survive.
He said: "Both UK and Scottish governments must continue to recognise the urgent need for more robust funding to be channelled into the sector by way of additional grants so that businesses can remain solvent through to Spring 2021."
Finance Secretary Kate Forbes said the chancellor's announcement was welcome but long overdue
The furlough scheme subsidises the wages of people who cannot do their jobs, either because their workplace is closed or because there is no longer enough work for them.
As part of the revised scheme, anyone made redundant after 23 September can be rehired and put back on furlough.
The furlough scheme had originally been due to end on 2 December - the same day that England is scheduled to come out of a nationwide lockdown.
The Scottish government had said that this meant the full scheme would not be available to workers in Scotland if it had to impose tougher restrictions after that date.
The chancellor said his intention in extending furlough until the end of March would "give businesses security through the winter" and continue to protect millions of jobs.
He said it would apply throughout the UK, which he said showed that the country had "a Treasury for the whole of the United Kingdom".
The Podlitical team have been examining the behind-the-scenes tensions that led to the Chancellor's extension of the furlough scheme.
You can listen to the latest episode here, or wherever you get your podcasts.
Responding to Mr Sunak's statement, Scottish Finance Secretary Kate Forbes said it was a positive development but long overdue, and that the support should be available for as long as employers needed it.
Ms Forbes also said months of "unnecessary confusion" by the UK government meant that some employers had already decided to make people redundant.
She added: "I welcome the chancellor's indication that, as in March, employers may be able to bring back people they have made redundant and include them in the furlough scheme, which could go some way to addressing this."
Scottish Secretary Alister Jack said the UK government had been a "lifeline" for many Scottish people since the start of the pandemic.
He said: "Never has the strength of the Union, and the might of the UK Treasury, been more important. Together, we will get through these difficult times."
- Published5 November 2020
- Published5 November 2020
