A Hamilton MP has called for a furlough u-turn after national bakery chain Greggs announced last month that they face making job cuts.
Lanark and Hamilton East’s Angela Crawley has said the UK Government must perform an urgent U-turn over its decision “to withdraw support for jobs”.
It comes after more companies voiced fears of redundancies when the furlough scheme ends this month.
Bakery chain Greggs, which has 25,000 workers across Scotland and a number of stores across the MP’s constituency, is the latest company to indicate it may have to cut staff hours or jobs when the scheme ends, warning “with the Job Retention Scheme planned to end in October we are taking steps to ensure that our employment costs reflect the estimated level of demand from November onwards.”
It comes as a new survey from Censuswide and Virgin Money revealed four in ten (42 per cent) small and medium businesses think they will have a smaller workforce in December than they did in September, and a quarter think they might go out of business next year amid a second wave of covid-19.
Ms Crawley told the Advertiser: “The devastating impact of the Tory decision to withdraw support for jobs in the middle of a pandemic is starting to hit home – with growing fears of mass redundancies.
“Boris Johnson was repeatedly warned that thousands of people could lose their jobs unnecessarily as a result of Tory cuts – and those warnings are now starting to become reality.
“The Tory government must perform an urgent U-turn, reinstate a full job protection scheme, and devolve financial powers to the Scottish Parliament so we can protect Scotland’s economy.
“Scotland shouldn’t have to wait for Westminster to act while people’s livelihoods are on the line.
“If the Tories won’t act now to save thousands of Scottish jobs they will demonstrate beyond doubt that the only way to protect Scotland’s interests is to become an independent country.”
The Treasury, however, said they have initiated a new support package for returning workers and businesses across the UK.
A Treasury spokesperson said: “The UK-wide measures announced last week include a new Jobs Support Scheme to protect millions of returning workers, extending the Self Employment Income Support Scheme and 15% VAT cut for the hospitality and tourism sectors, and help for businesses in repaying government-backed loans.
“The package was broadly welcomed by business groups across Scotland and provides welcome support for businesses and workers.
“As the Chancellor has said it would be fundamentally wrong to hold people in jobs that only exist inside the furlough.
“Our focus will continue to be on creating new opportunities for people in Scotland and supporting them into viable and secure jobs.”
