NICOLA Sturgeon has called for the UK Government’s furlough scheme to be further extended to protect Scottish jobs amid GDP plummeting by 20 per cent in the first full month of lockdown.
Figures released this morning indicate a decline of more than 20 per cent across the UK in April – with the First Minister calling on the Treasury to continue to support the economy as the Covid-19 crisis continues.
The jobs retention scheme has been extended to October but will the level of support is being phased out from August, with employers required to contribute a proportion of wages.
Ms Sturgeon said if no additional support was offered from Westminster, businesses could be forced to re-open to customers before it is safe - putting health at risk.
She said: "It confirms the scale of the economic crisis that has inevitably been caused by the health crisis that we face.
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“I have previously welcomed the UK Government’s interventions, especially the furlough scheme which has helped to preserve jobs during this period. But in my view, it is now time to signal a further extension of Treasury support – other countries have already made this move.
“The alternative to extending support being put in place is either that businesses are forced to re-open before it is safe to do so... or businesses have to take an even bigger hit and that will cost jobs. In my view, neither of those alternatives is acceptable.
“I hope we will see further action form the UK Government and we look forward to working constructively with them, playing our full part in making all of that happen.”
Economy Secretary Fiona Hyslop warned that “the scale of the challenge ahead is substantial” but stressed that Scotland is moving at its own speed in easing the lockdown.
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She added: “We welcome the support of the job retention scheme and what is given to employers and employees and the scheme’s extension to October, but as other countries have done, the UK must look at continuing the scheme in some form to deliver a firm foundation of keeping people in work as a better option of funding mass unemployment.
“If the UK Government continues to reduce support, it is important that there is continued recognition that public health guidance is devolved and so progress in easing the lockdown may be different in each nation.”
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