Wages to be paid for businesses forced into closures
BUSINESSES forced to close due to emergency restrictions over the winter will be propped up after the UK Government agreed to pay two-thirds of lost wages.
The furlough replacement scheme will not start until November, with Chancellor Rishi Sunak ignoring a call from Nicola Sturgeon for the support to start immediately as thousands of pubs and restaurants across the Central Belt were last night forced to close for 16 days.
But business leaders have warned the support is “not sufficient enough to offset the impending loss of trade and jobs”.
The First Minister admitted yesterday there has been a “lack of clarity” over which businesses should close after a row erupted over the lack of a distinction in licensing law between a cafe, which can stay open, and a restaurant.
Additional police will be deployed in Scotland to ensure pubs and restaurants comply with new restrictions and close to indoor customers by 6pm for the next two weeks.
Chief Constable Iain Livingstone said officers will be “highly visible” in communities
as the latest measures to combat a rise in coronavirus cases come into force.
Pubs, bars, restaurants and cafes outside central Scotland are now only allowed to operate indoors between 6am and 6pm and not serve alcohol, though drinks can be served until 10pm in outdoor areas.
But pubs and licensed restaurants in the Central Belt will be forced to close for all but takeaway service for 16 days.
A Treasury source said the UK Government’s expanded jobs support scheme would cost “hundreds of millions” of pounds a month.
The job support scheme will run until May and will only be available to businesses told to close under local or national rules as well as sectors that remain closed, such as nightclubs.
Pubs and restaurants in the north of England could be asked to close next week in similar measures introduced by the Scottish Government.
The Chancellor said: “Throughout the crisis the driving force of our economic policy has not changed.
“I have always said we will do whatever is necessary to protect jobs and livelihoods as the situation evolves.
“The expansion of the Job Support Scheme will provide a safety net for businesses across the UK who are required to temporarily close their doors, giving them the right support at the right time.”
The UK Government is increasing cash grants to businesses south of the Border shut in local lockdowns – with up to £3,000 available per month to firms.
The Scottish Government will receive around £700 million in consequentials and has been urged to follow suit by extending support grants.
Scottish Finance Secretary Kate Forbes welcomed the additional funding, but said there was “some clarity still needed on what it covers”, pointing to health, transport and business support.
Liz Cameron, chief executive of the Scottish Chambers of Commerce, welcomed the announcement but warned that short-term support is ultimately harming business.
She said: “The additional announcement from the UK Government to pay a grant of £3,000 to businesses in England who are impacted by local or national restrictions, we would expect the Scottish Government to be mirroring these grants for businesses in Scotland.
“Whilst these short-term measures are welcomed, they are not sufficient enough to offset the impending loss of trade and jobs. We need governments to focus on enabling business to continue to freely function and manage our way through this situation. This stop-start approach is damaging business, consumer confidence and investment.”
The SNP has welcomed the support but called for more widespread help to be made available for businesses.
The party’s Treasury spokeswoman Alison Thewliss said: “Any measures brought forward to help jobs and businesses are welcome, but it’s clear the partial furlough plans announced by the Chancellor for areas affected by further restrictions don’t go far enough to address the impending mass job losses as a result of Tory cuts to national financial schemes in just a matter of weeks.
“The SNP has been calling for a full extension to the national furlough scheme since May. The limited measures will still leave many workers, businesses and self-employed people with no support at the worst possible time.
“Thousands have already lost their jobs unnecessarily, many good businesses have already gone under, and the devolved governments have been hindered in responding to this unprecedented crisis.”
She added: “It is crucial Scottish ministers have absolute discretion in deciding on public health grounds alone when to bring in restrictions in Scotland, and not have to wait for Westminster approval before financial support is made available.
“The SNP will continue to press for a full national job protection scheme and support for the forgotten millions left behind. Ultimately, it is clear that the only way to properly protect Scotland’s economy is with the full powers of an independent country.”
Shadow chancellor Anneliese Dodds claimed the rethink by Mr Sunak “demonstrates the chaos and incompetence at the heart of government”.
She added: “His delay in delivering support has caused unnecessary anxiety and job losses.
“Even at this late stage, he still has no plan to support sectors that are currently unable to operate at full capacity.
“Businesses and families don’t have the luxury of going at Rishi Sunak’s pace when millions of jobs and livelihoods are on the line.”
Earlier, the First Minister delayed publishing details of £40 million the Scottish Government has made available to businesses forced to close over the next two weeks amid the UK Government announcement – calling for the Treasury support to apply in Scotland from last night instead of the November 1 start date.
Scottish Tory leader Douglas Ross has welcomed the “seismic” extra £700m of funding – taking the total of emergency support from the UK Government for Scotland to £7.2 billion.
He added: “The Scottish Conservatives have brought forward a jobs plan with bold proposals for a hardship fund to keep businesses afloat, job security councils to keep people in work, and long-term projects to rebuild Scotland stronger.
“Where are the SNP’S plans to save Scottish jobs and back businesses?”
This stop-start approach is damaging business, consumer confidence and investment