Man has lost his job

Extending furlough could pay for itself

 

The Scottish Government has released a paper that outlines how extending the furlough scheme could actually pay for itself, and not be an extra burden to the tax payer.

The research shows that by extending the furlough scheme through to June 2021, at an additional cost of £850m, upwards of 60,000 could be saved.

By saving these 60,000 jobs, GDP will be retained and therefore the extension will essentially pay for itself.

Recent studies in Scotland have found that 2/3 of companies are still furloughing at least some of their workforce. This translates to about 15% of the overall workforce.

The scheme which is due to end on October 31st, saved approximately 779,500 in Scotland alone, with approximately 200,000 still using the job retention scheme in some capacity.

The new paper from the Scottish Government highlights that certain sectors are completely unable to operate under current restrictions and so ending support for them would be incredibly detrimental.

Economy Secretary Fiona Hyslop said:

“The UK Government must think again about withdrawing blanket support and they must urgently implement some form of extension which would continue to provide help for the sectors that have been most heavily affected.

“Extending the Job Retention Scheme for eight months would save 61,000 jobs in Scotland and help secure a stronger economic recovery from coronavirus. Unlike the Scottish Government, the UK Government has the borrowing powers necessary to fund the extension of the Job Retention Scheme and they must act now to protect jobs and livelihoods.”

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