Furlough end ‘puts a million jobs at risk’

WTHE London Mayor has warned that more than one million Londoners could lose their jobs after the Government ends its furlough scheme.

Sadiq Khan says those at risk are working in sectors which face devastating financial implications due to Covid19 and the effects of lockdown.

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He tweeted: “Almost 1.1 million Londoners are in sectors facing huge economic uncertainty.

“Ending the furlough scheme in October would be turning a blind eye to the looming unemployment crisis London and the rest of the UK faces - the Govt needs to urgently reconsider.”

He also shared a Guardian article on Twitter which is tracking the latest data on redundancies and furloughs in the UK.

This week, Mr Khan announced a financial package to help ‘creative and night-time businesses at risk’, tweeting: “Culture is what makes London a world-class city.

“It’s also one of the sectors hit hardest by COVID-19.

“That’s why I’ve made £2.3m available to help creative and night-time businesses at risk.

“If you run a grassroots music venue or an LGBTQ+ venue, apply for funding now.”

Earlier this month, shadow business secretary Ed Miliband warned of the risk of “hundreds of thousands” of workers being made redundant if the furlough scheme is not extended.

He said on July 23: “Yesterday, Make UK, the manufacturers’ organisation, said a furlough extension was vital and I quote, ‘to prevent a jobs bloodbath in aerospace and automotive’.

“We see the looming threat to sectors that have not yet reopened like events and exhibitions and those operating well below capacity like hospitality.

“Yet from next week, the Government is insisting that every single employer, whatever their industry, will have to start contributing to the furlough. Does (Business Secretary Alok Sharma) not recognise that this decision to phase out the furlough irrespective of circumstance risks handing a P45 to hundreds of thousands of workers?”

Mr Sharma responded: “The furlough scheme will have been up and running for a full eight months providing a huge amount of support to over nine million jobs and of course it is becoming more flexible, it is allowing people to return to work part-time.

“And (Mr Miliband) will also know the Chancellor (Rishi Sunak) set out the job retention bonus as well.”