Economic Margaret Ferrier MP
More than 48,000 people in South Lanarkshire have been supported by government schemes to retain jobs.
Figures released by the UK Government revealed that across the region 39,200 people have been furloughed with 80 per cent of wages paid through the Coronavirus Job Retention Scheme (CRJS).
Another 8900 have claimed support to the tune of £26 million through the Self-employment Income Support Scheme (SEISS).
Following Chancellor Rishi Sunak’s announcements that the CJRS and SEISS will begin to be scaled back over the coming months, MPS and MSPS in South Lanarkshire have urged a re-think to ensure jobs are protected.
Last week, the Office for National Statistics revealed that the UK’S gross domestic product (GDP) shrunk by a fifth in April, three times worse than the financial crash of 2008.
Margaret Ferrier, whose Rutherglen and Hamilton West constituency has seen 13,300 workers furloughed and 3000 supported by the SEISS, said: “Whilst many people have benefited from the support provided by the furlough scheme in the short term, plans to wind the scheme down in the coming months by increasing employer contributions could end up bringing forward the kind of redundancies the scheme was designed to minimise.
“These figures also don’t take into account the many people who have fallen through the cracks in these schemes, such as those who started new jobs in late February and early March and people who became self-employed in the last tax year. Calls for support for these groups of people have fallen on deaf ears at the Treasury.
“The Scottish Government is doing everything that it can to mitigate against the economic shock of coronavirus, but some funding through Barnett consequentials has not yet materialised, despite promises from the Treasury. All Barnett consequentials owed to Scotland must be paid in full, to maximise the support offered to Scottish businesses and employees as the recovery from coronavirus begins.”
Lanark and Hamilton East MP Angela Crawley has written to
Chancellor Rishi Sunak several times with concerns from furloughed and self-employed constituents.
Across her constituency, 11,900 people have been furloughed and 2600 have taken up support through the SEISS.
Ms Crawley said: “It is encouraging that so many people across Lanarkshire have been supported during the Covid-19 lockdown by the CJRS and the SEISS.
“This support has been vital in allowing people to stay home and stay safe in line with Scottish and UK Government advice.
“There are still many who have received no assistance through these schemes, putting them into debt and damaging businesses.
“For example, those who started a new job in February and March are ineligible for the CJRS, and many selfemployed people have been left in limbo due to conditions in the SEISS.
“I have written to the Chancellor on numerous occasions throughout this period to aid the hundreds of my constituents who got in touch about their exemptions from these schemes, but the policies have remained rigid and the Chancellor has refused to listen.
“I also have concerns that if the CJRS is removed too quickly to get England back to work, our Scottish response to the virus will be undermined.
“Similarly, without sector-specific aid for industries such as catering and hospitality, many local and national businesses will suffer and we will risk unnecessary spread of the disease, undoing all the good work so far.
“I am still urging the Chancellor to help those left behind by the schemes, and call on the UK Government not to be reckless and ensure the schemes are not ended abruptly.”
David Mundell’s Dumfriesshire, Clydesdale and Tweeddale constituency – which includes part of Clydesdale in South Lanarkshire as well as parts of the Scottish Borders and Dumfries and Galloway – has seen 9300 people furloughed as well as 3300 self-employed seeking support.
He said: “The positive impact from the various schemes designed to help safeguard jobs and businesses will be crucial in the coming weeks and months as we take further steps towards recovery.”