Furlough end should follow lockdown exit

Kate Forbes was right to highlight that some Scottish businesses may struggle financially as a result of the furlough scheme being phased out.

There is no question that furlough must eventually come to an end, but business has not resumed as normal. As Covid case numbers rise dramatically, more people are being required to self-isolate. Many employers are closing their doors for a period if even one staff member tests positive for coronavirus, meaning bars, cafes, shops and more will lose income.

Reducing the government’s contribution towards furlough pay puts yet more pressure on business owners. We must avoid at all costs a situation where publicans and restaurateurs begin to ignore health concerns in order to keep money coming in with which to pay employees. Given the current high unemployment rate, it is also vital that we do not put business owners in a position where they feel it necessary to let staff go due to money worries.

As the finance secretary argued, the Treasury’s furlough easing strategy should perhaps be “tailored to the exit of lockdown” rather than marching ahead of it.