Meeting of the Parliament (Hybrid) 17 September 2020
I am happy to concede that the UK furlough scheme has been an excellent initiative. That might be why I am here urging the UK Government to extend such a sensible scheme. I look forward to the member supporting that at decision time.
Just yesterday, the Scottish Government published new analysis on Scottish firms’ use of the furlough scheme. It shows that, over the piece, nearly 100,000 people in Scotland have been supported by that scheme, that an estimated 15 per cent of Scotland’s workforce are still on furlough and that, of all firms that were surveyed, two thirds were still furloughing their employees to some extent.
As highlighted by the Scottish Government’s chief economic adviser in his report, extending the job retention scheme for even just eight months could reduce unemployment in Scotland by 61,000 through the first half of next year. Although only a temporary measure, that would have a positive impact on the labour market, preventing unnecessarily higher levels of unemployment over the next few years. Many businesses have a viable long-term future, but only if they continue to be supported. Keeping people in jobs rather than transferring the cost to the state through the social security system makes sense. Sustaining businesses to reduce economic decline, which jeopardises other businesses and jobs, makes sense. Without longer-term support, there is a risk that firms will fall off the cliff edge and that many people who otherwise might not have, will fall out of the labour market. That does not make sense.