The UK Government has promised to address the tax scandal that left 200 Scottish workers in poverty and locked out of the furlough scheme.
Paymaster General Penny Mordaunt made the pledge after MP Stewart McDonald highlighted the plight of staff, including those at the Blue Dog bar and Ad Lib restaurant in Glasgow, in a Commons debate.
The Tory minister’s response came as a crowdfunder was launched with backing from Deacon Blue singer Ricky Ross and TV host Michelle McManus.
The Daily Record has told how millionaire Blue Dog and Ad Lib owners Alan Tomkins and Billy McAneney refused to pay workers even minimum wage after tax irregularities meant they were locked out of the furlough scheme.
McDonald made an appeal to Mordaunt to aid workers, quoting a Facebook post from barman John Russell who stated: “I don’t know what to do any more, I’m fighting tooth and nail.
“Mentally I’m defeated and I’m in a carousel of depression and self loathing but bills keep coming in and rent needs paid.”
McDonald said: “So I am pleading with ministers, please look at these details, please get these people the financial support they are entitled to and so desperately, desperately need.” He told the debate on Monday night “an issue” between the businesses and HMRC have led to zero furlough payments being paid since October.
Different payroll outsourcing firms used by Tomkins and McAneney were wound up owing large sums to HMRC, which pulled the plug on their furlough payments last October.
The tycoons have refused to discuss any arrangements they entered into regarding the payrolls.
Mordaunt, a minister without portfolio in Boris Johnson’s Cabinet, told McDonald the businesses were “stuck between a rock and a hard place” and added: “I undertake to ensure that those issues are addressed.”
McDonald replied: “I’m pleased that the Paymaster General has given a commitment to Parliament that she will address this tortuous situation. This needs to happen as swiftly as possible so that staff can get the financial security they have been lacking in so far.”
Barman John said he had found it surreal for his case to be raised in Parliament.
He added: “It’s good to finally see something that looks like progress.”
The crowdfunder on gofundme.com claims Ad Lib and Blue Dog staff are owed thousands in wages and unable to access Universal Credit because details haven’t been processed properly by their employer.
A spokesperson for Tomkins and McAneney last night blamed HMRC for failing to resolve the issue.
They claimed to have paid staff furlough wages out of their own funds until the end of October and reduced amounts since then due to financial constraints.
They added: “The owners are desperate for a resolution so all staff can be paid in full what they are due through the furlough scheme.”
“Since mid-June when furlough payments stopped without reason or explanation, our contracted payroll company pressed for reasons and a resolution. It took HMRC nearly five months to respond meaningfully and a further three months on, there are still no payments.
“In order to maintain employment whilst awaiting an HMRC response and fulfilling HMRC’s request to maintain staff on payroll with up to date RTI information, the owners, from their own personal and business funds, paid the furlough amounts to staff until the end of October.
“Since then, due to financial limitations, they have paid approximately half the amounts again from their own funds. In the case of Blue Dog around £100,000 has been funded by the owners to date.’
“The owners are desperate for a resolution so all staff can be paid in full what they are due through the furlough scheme.”
