Rishi Sunak must extend the furlough scheme and business rates freeze if lockdown continues for another month, the SNP has demanded.
The Chancellor Rishi Sunak is expected to start winding down the scheme at the end of this month despite the expected delay to ending lockdown in England.
Boris Johnson is likely to confirm on Monday that lockdown and social distancing measures will continue in England until mid-July which could have a knock-on effect on easing restrictions in Scotland on 28 June.
With Sunak planning to phase out financial support for businesses and workers from 1 July, despite continued lockdown restrictions, Alison Thewliss MP warned businesses could be forced to make thousands of people redundant.
The SNP Treasury spokeswoman said Sunak risked causing another “wave of job losses” and that it was crucial that full furlough support at 80 per cent of wages, and the business rates freeze, are extended for as long as is necessary.
Thewliss said: “When Rishi Sunak threatened to cut support prematurely last autumn, businesses began laying off workers - and by the time he made an eleventh hour U-turn it was too late for many families who had already lost their jobs and livelihoods.
“The Tories have made the same damaging mistakes repeatedly throughout the pandemic - they must not do it again. There must be an immediate U-turn on these Tory cuts, before it is too late.
“It is critical that full furlough support at 80 per cent of wages, and the business rates freeze, are extended for as long as is required by each of the devolved nations - including until covid restrictions are fully lifted.”
The most recent figures showed there were 3.4 million jobs on furlough in the UK at the end of April, which was 900,000 lower than the month before. Since the start of the scheme last March, a total of 11.5 million jobs have been supported by furlough at some point at a cost of £64 billion.
From July 1, the Government’s share will fall to 70 per cent with employers contributing ten per cent, as part of a staged withdrawal of the scheme due to finish completely at the end of September.
The hospitality sector is likely to be the worst hit if furlough is not extended.
UK Hospitality chief executive Kate Nicholls said: “We recognise that the Chancellor has provided long-term support for the sector which extends into the recovery period, but there is no doubt that any extension to the restrictions will be challenging for sectors yet to open and those still trading at a loss to navigate.”
