Wave of Scottish redundancies predicted as furlough scheme is wound down
Rishi Sunak is pulling the rug out from under the feet of Scottish businesses, and the damage this will cause, at the same time as he will be pulling the £20 Universal Credit uplift, is going to create a double whammy of misery for Scottish families. So much for his promises to do whatever it would take. ___________________________________________________
Wave of Scottish redundancies predicted as furlough scheme is wound down:
With one in five firms saying they will have to make staff redundant, the SNP accused chancellor Rishi Sunak of pulling the rug from under the feet of Scottish businesses.
Scotland is braced for a wave of unemployment with the winding down the furlough scheme as one in five businesses estimate they will have to make staff redundant.
From 1 August firms are expected to contribute more to the wages of furloughed employees which has prompted warnings from the British Chamber of Commerce of thousands of redundancies.
A survey of businesses found that one in five firms plan on letting staff go in response to Sunday’s furlough policy change, which will see employers asked to contribute 20 per cent towards the salaries of those whose wages are currently being subsided by the government.
More than 140,000 people are on furlough in Scotland and the the employers’ organisation is predicting a widespread skills shortage.
SNP Deputy Westminster leader Kirsten Oswald MP said:“This is a stark warning from the British Chamber of Commerce of the consequences of the Chancellor rolling back the furlough scheme just as businesses are starting to find their feet again.
“Winding down the furlough scheme now pulls the rug from under the feet of thousands of businesses in Scotland who are unable to open. Once again, furlough is being worked around the needs of businesses in England, with the needs of firms in Scotland being completely ignored.”
Oswald added: “For a government that is supposedly on the side of business they are hanging them out to dry now by winding back the furlough scheme despite concerns from firms that they will have to let workers go. Businesses are still finding their feet again and building themselves back to pre-COVID levels, but they are being chucked into the deep end by the Tories.
“If the Tories are serious about levelling up across the United Kingdom then they must recognise that businesses in Scotland need the government to continue to support them as long as they need it.”