New scheme is a poor imitation
Over the past few weeks I have had the opportunity to visit hospitality businesses across my constituency of Renfrewshire South.
I know that bars and restaurants have been particularly impacted by the necessary covid restrictions and I wanted to take the time to listen to those who work in the sector and find out about the work that has been done to keep people safe.
In Johnstone, businesses such as the Johnstone Coffee Co have worked hard to not only comply with regulations, but also been an invaluable support to people in the area.
On the other side of the constituency, the Uplawmoor Hotel is an invaluable part of the village and found ways to continue providing a service to bring some sense of normality to their community.
The hospitality industry has found the Job Retention Scheme an absolute lifeline.
As we all deal with the ongoing health response to the pandemic, economic uncertainty remains high particularly for sectors of that economy that have been disproportionally impacted.
The scheme will end in four weeks, leaving companies and individuals in very difficult circumstances.
When almost a third of Scottish employees have been furloughed, this is a clear indication of the economic impact of Covid-19 and the need for support as we work our way through this public health crisis.
Extending this furlough scheme for eight months would save 61,000 Scottish jobs and help us secure a stronger economic recovery from coronavirus.
Research from the Scottish Government’s chief economist estimates that the extension of the Job Retention Scheme could pay for itself by increasing GDP and lowering debt as a share of GDP.
Countries across the globe are recognising the importance of targeted labour market policies, including scheme similar to the one here in the UK due to end, with countries such as France already committing to extending its employment support scheme until July 2022, and Germany which will continue their scheme until the end of 2021.
The scheme put forward by the UK Chancellor is a poor imitation of these schemes.
It means employees must work a third of the hours, to be paid by the employer, with workers’ pay topped up by another third by firms and the government.
It also means that this will exclude those who work for firms that are unable to open and, for those eligible, will present a wage cut from the current 80 per cent to 66 per cent.
In my time spent over the past few weeks engaging with restaurants, bars and cafes across Renfrewshire South they have stressed the importance of the current scheme in supporting the industry.
This poorly thought out scheme simply does not offer the security and support that they need.
The Scottish Government has put together a total package of £2.3 billion to support our economic recovery and is preparing for the future to get us through the economic crisis that may will follow this public health crisis.
Without the powers that any other independent country would have to borrow however, we remain reliant on those at Westminster on making the right decisions to save jobs and businesses.
I will continue to work with my colleagues here in Renfrewshire South to do all we can to support and protect workers and businesses as we deal with the impact this pandemic has had.