Furlough scheme extension receives cautious welcome

BUSINESSES and unions in Scotland have welcomed the extension of the job retention scheme but have called for more details on flexible working.

Chancellor Rishi Sunak announced the furlough scheme will be in place until at least October but said companies will be asked to “start sharing” the cost from the start of August.

Furloughed workers will be able to return to work part-time from that point, with employers asked to pay a percentage of their salaries.

Andrew McRae, Scotland policy chairman at the Federation of Small Businesses, said: “Today’s shrewd decisions from the chancellor will give thousands of large and small Scottish employers the right sort of flexibility.

“The move to allow operators to partially furlough their staff while they consider how to get back up to speed should mean more businesses have the r i ght tools at their disposal.

“In the coming weeks, smaller firms will want to understand the next steps for the scheme.

“Policymakers will need to carefully consider how to co-ordinate financial support for businesses with advice to firms about how and when to reopen safely.”

Roz Foyer, general secretary of the STUC, said: “The extension of this scheme is absolutely vital but its detail will be all-important.

“Being able to use the scheme to suppor t phased return to work through reduced hours is also an important step.”

First Minister Nicola Sturgeon gave a cautious welcome to the scheme, saying: “I haven’t seen the full details yet but I certainly welcome the extension.”