‘Chancellor has played blinder ... but it can’t last’
Glasgow firms looking anxiously towards future
WITH the lockdown shutting down trading, firms in Glasgow have been using the coronavirus job retention scheme to save jobs and keep workers in wages.
The scheme has paid out more than £10 billion across the UK, protecting around 7.5 million workers, with 930,000 employers furloughing staff during this crisis.
Chancellor Rishi Sunak extended the scheme and said he wanted to “avoid a cliff edge” and get people back to work in a measured way.
He said the changes “will give flexibility to businesses” and protect livelihoods of workers.
In Glasgow, thousands are on the furlough scheme.
Scullion Law, based in Saltmarket and in Dumbarton Road, has put 16 of its 30 strong team on furlough to prevent redundancies.
Nicholas Scullion, of Scullion Law, said: “It’s absolutely great, It’s the best thing that has been done for small businesses as it allows people to keep their jobs.”
The firm is putting two more on furlough this week.
Mr Scullion said: “Work has ground down, it didn’t come to an immediate halt, clients still needed help.”
However, he added: “If courts are closed until September, I don’t know how many court lawyers we’ll need. We have 10 property lawyers but the Registers of Scotland is closed.
“Furlough means we’re able to keep the team even though, like other firms, we’re running out of cash.”
Mr Scullion said was “horrible” deciding who was to go on furlough but that it was down to who didn’t have any more work to do and the firm followed government advice.
He said Scullion Law didn’t use the furlough for the first month as there was still work to be carried out.
However, he said: “We have kept people working as much as we can. But there came a point where we had to use it.
“People got to the stage where they were saying there was no work to do. But they’ve got income until October.”
The lawyer said he is looking for some flexibility from the Chancellor when the subsidy changes from 80% to 60% in July.
He added: “I’m hoping we can maybe bring people back on, some staff could work part-time.”
The extension gives employers like Scullion Law some breathing space, but difficult decisions still lie ahead. Mr Scullion said: “We thought it was ending in July. Now I don’t need to think about redundancies until at least October.”
He said his plan and hope is to not have to make anyone redundant, but added: “It’s all crystal ball stuff.” How long the government can continue to pay wages is a concern for many employers – but few expected it would last even this long.
Mr Scullion said: “I hadn’t heard of Rishi Sunak before he was Chancellor.
“I think he’s played a blinder. “Surely, it’s going to end by October. But for now, it gives us a bit of certainty.”
His wish is to emerge with no jobs lost.
He said: “I hope and would love to have all our team back with us.” The crisis has hit all sectors with the third sector and charities also forced to furlough staff.
Nil By Mouth, a leading anti-sectarianism charity, has furloughed its education programme staff, as it was a self-funded part of the operation.
Director Dave Scott, pictured inset, said: “Furlough helped save the education programme.
“Schools are closed so there’s less we can do just now and it’s more difficult to access funding.
“The extra four months has saved the education programme for the year.
“For small charities like us been a godsend.”