Chancellor: ‘Inspiring’ Scots get back to work after furlough

Chancellor of the Exchequer Rishi Sunak yesterday praised the “inspiring” people and businesses of Scotland during a visit to meet those supported by the UK Government’s £352 billion Plan for Jobs.

Rishi Sunak travelled to Fife, Edinburgh and Glasgow where he visited several businesses that have returned workers from furlough, held a roundtable of Scottish business leaders and saw how Scotland is creating jobs and leading our green recovery.

Around one in three jobs in Scotland have been supported by the UK Government’s support package and more than 90,000 Scottish businesses received more than £4.1 billion in loans since the start of the pandemic.

The Chancellor’s visit came as new figures released yesterday show that the number of people in Scotland on furlough has halved in the last three months, with just 141,500 jobs still furloughed.

 

Chancellor of the Exchequer Rishi Sunak said: “It’s been inspiring to hear stories of people and businesses in Scotland that are now starting to feel the weight of the pandemic lifting off them as they get back to work – our Plan for Jobs is working and it’s great to see people succeeding after a year of uncertainty.

“It’s been a challenging time but the UK Government has delivered one of the most generous packages of support in the world, protecting one in three Scottish jobs.  

“Scotland will be key in ensuring the UK’s economic success – creating jobs, powering our growth and driving a green recovery by hosting COP26 later this year.”

During the visit, the Chancellor toured the Offshore Renewable Energy Catapult Turbine in Leven, Fife. The turbine is the leading technology innovation and research centre for offshore renewable energy.

He met SMEs who have used the turbine for development and have benefitted from UK Government funding for green ventures.

The Chancellor highlighted the important contributions Scotland makes to the UK, including towards the UK’s Net Zero transition and climate change leadership on the world stage, ahead of the COP26 Glasgow conference in November.

He also conducted a roundtable with Scottish businesses in the retail banking sector at the new Queen Elizabeth hub in Edinburgh, where he thanked them for their role in responding to the pandemic, keeping call centres and banks open for vulnerable customers, and distributing many of the UK Government business support schemes.

The Chancellor went on to see preparations for the International Festival and the Fringe. The UK Government gave £1m of funding to Edinburgh Festivals this year, to help the festival promote itself digitally to a bigger audience.

He visited a number of small businesses including Liggy’s Cake Company, which was supported through the furlough scheme and is now hiring new staff.

He also visited Dynamic Earth, an award-winning visitor centre in Edinburgh dedicated to educating people about the earth and environmental issues, and met with several staff who have returned from furlough and met a group of children taking part in the centre’s outdoor activities.

NUMBERS ON FURLOUGH FALL TO LOWEST LEVEL SINCE START OF PANDEMIC

  • Almost three million people have moved off furlough since March, according to latest data
  • More than half a million people left the scheme in the month of June alone, with fewer than two million people now remaining on furlough
  • Chancellor welcomes new data while meeting furloughed employees on a visit to Scotland

ALMOST three million people have moved off the furlough scheme since March as the economy began to bounce back and businesses reopened, according to new statistics.

Figures published yesterday which cover up until the end of June, show the fewest number of people on furlough since the scheme launched in March 2020, down from a peak of nearly nine million at the height of the pandemic in May last year.

1.9 million people remained on the scheme by the end of June, more than half a million fewer than the 2.4 million at the end of May.

The Business Insights and Conditions survey (BICS) shows numbers may have fallen even further – with estimates that between 1.1 and 1.6 million people are still on furlough.

It comes as the Chancellor visited Scotland where he has hailed the economic strength of the union and where the Government’s Plan for Jobs has supported businesses and families during the pandemic.

Ahead of meeting Scottish businesses and individuals in Edinburgh, Glasgow and Fife, where he talked to employees who have returned from furlough, Rishi Sunak welcomed the statistics.

Chancellor of the Exchequer Rishi Sunak said: “It’s fantastic to see businesses across the UK open, employees returning to work and the numbers of furloughed jobs falling to their lowest levels since the scheme began.

“I’m proud our Plan for Jobs is working and our support will continue in the months ahead.”

The figures also show a striking fall in the number of young people on furlough, who for the first time ever, no longer have the highest take-up of the scheme.

In the last three months, younger people have moved off the scheme twice as fast as all other age brackets, with almost 600,000 under 25s moving off the scheme.

Jobs in sectors including hospitality and retail are now also moving off the scheme the fastest, – with more than a million coming off the scheme in the last three months.

This decline means those in hospitality and retail no longer make up the majority of all those on furlough.

Furlough was extended until the end of September to allow for businesses to adjust beyond the end of the roadmap and to bring people back to work.

Starting on 1st August, the employer contribution to furlough costs will increase to 20% and that contribution level will continue until the scheme ends at the end of September.

The Government’s Plan for Jobs continues and is still in place to provide support, including Kickstart, traineeships and more work coaches to help people find jobs.

The government says this ‘is is the right thing to do’ to reduce long term economic scarring in the labour market and our ongoing Plan for Jobs means that we will continue to support people as the economy recovers.

A beating Heart for Newhaven!

£792,000 for Victoria Primary School community project

A primary school in Newhaven, which was about to fall empty, is set for a new role at the centre of the community following an award £792,000 from the Scottish Land Fund.

On hearing news of its successful application, Rodney Matthews, Chair, Heart of Newhaven Community, said: “This grant will cover the purchase price of the property and help with initial development costs.

“While the date when the children will move into their new school in Western Harbour is not yet known, we are now able to move forward confidently with our plans for what is a much-loved icon of Newhaven.”

In the project’s latest newletter, released this morning, The Chair told Heart of Newhaven supporters: “The site of Victoria Primary School IS going to be the Heart of Newhaven Community!

“This time last year the City of Edinburgh Council approved our request to take over the school and reduced the valuation price by £85,000 because of what we’ve promised to do, especially for the very young, the elderly, isolated and most vulnerable.  Provided we could pay them£700,000, they would sell the site to the community.    

“The Scottish Land Fund (SLF) has just given us that whole amount – and more!

“This SLF was set up by the Scottish Governmentto help charities just like ours working to improve local communities in the ways we have set out for the site, in order for it to become a vibrant hub of activity of people of all generations working and playing together; as we have often said, ‘the beating Heart of Newhaven.

“All approved. We are now poised to sign two contracts:  one with the SLFand the other with the Councilfor vacant possession of the site on a date yet to be announced, dependent on the completion of building works across the road. When we do get the keys, there will be much work to be done to get the building safe and ready for use, so bear with us. We will go as fast as we safely can.

“There will be plenty of exciting things to share to take us on through the challenge of the months ahead right through the inevitably unknown autumn and winter to come and into the spring of 2022  – when you will really begin to see things happen.”

The Heart of Newhaven funding announcement – and welcome news for three further community projects – was made yesterday (29 July) by Environment and Land Reform Minister, Mairi McAllan (below), while visiting EATS Rosyth.

Last November EATS Rosyth received £284,500 from the Scottish Land Fund in order to purchase a disused Clydesdale Bank Building in order to relocate and expand its community activities around cooking and food.

Ms McAllan said: “Communities across Scotland are achieving great things with support from the Scottish Land Fund. These awards will be a boost to the four communities who’ve worked so hard to keep their projects going through all the challenges of the last year.

“Visiting the Rosyth Community Garden and Orchard has shown the value of placing ownership and decision-making in the hands of local communities.

“By relocating the community hub to the new premises acquired through the Scottish Land Fund, EATS Rosyth aim to expand their existing services and offer a suite of new activities aimed at growing and sharing food, reducing waste, helping the environment, and improving food education.

“These projects will make a big contribution to their communities, to local resilience and recovery.”

Stephen Lynas, Chairman of EATS Rosyth said: “We’re grateful to the Scottish Land Fund for their assistance in helping us purchase the building. Following a successful round of fundraising and getting in place the various consents required, we will be starting the renovation works for our new hub premises in the very near future.

“We’re looking forward to providing a brand-new community facility that will give us with a fantastic platform to grow our services and support our local community in Rosyth and Southwest Fife.”

Other projects benefiting during the current round of funding include Forgan Art Centre, which has been given £292,800 to buy the Leng Home, a disused care home in Newport on Tay and turn it into a space for social and economic activities and to increase social interaction.

Forgan Art Centre Chairperson, Gillian Burch, said: “The management team at Forgan are really delighted that we have secured the funding to buy the Leng Home and take the Forgan Arts Centre forwards onto the next phase of its journey.

“The continued support from our local community, who want to see the Leng Home kept for community use, has encouraged us to keep going and we now look forward to expanding the Forgan Arts Centre in its new home.”

Carluke Development Trust has been awarded £112,000 to buy a two-storey house adjacent to Carluke High Mill, which the Trust already owns. This will allow it to continue its project to reduce dereliction and promote regeneration in the town.

Bill Anderson, Carluke Development Trust, said: “We are delighted to receive support from the Scottish Land Fund for the acquisition of the former Millers House that sits within the Carluke High Mill and ONECarluke Community Growing & Learning Garden site.

“The acquisition of the house will complete the community ownership of the whole site and allow the project to create a larger Community HUB and move into an even more exciting period of delivery and further development.”

And Edinbane Community Company on Skye has been given £135,000 with which to buy three serviced building plots on which it plans to erect six affordable homes that will be rented to the community.

Alistair Danter, Chair, Edinbane Community Company, said: “This is great news for the community who have been working for over three years to tackle the lack of affordable housing in Edinbane.

“We are immensely grateful to the Scottish Land Fund for its support of our community initiative, and we look forward to working with the private developer SLL to deliver six new affordable homes in 2023.”

The new Chair of the Scottish Land Fund, Cara Gillespie, said: “We are delighted to make these awards, the first for our new Committee. 

“It is a privilege to support communities with their efforts to improve where they live. These awards will make a positive difference, strengthening communities and empowering local people.”

The Scottish Land Fund is funded by the Scottish Government and delivered in partnership by The National Lottery Community Fund and Highlands and Islands Enterprise (HIE).

Sandra Holmes, Head of Community Assets at HIE, said: “It’s great to see more dynamic communities taking control of resources for the long-term benefit of their local areas and people.

Having greater control over such assets will help ensure their long-term future. I am delighted we have been able to provide Scottish Land Fund support and wish all the groups the very best in their new ventures.”