Scottish Government issues sector guidance for easing lockdown

Support to return to work safely

New guidance has been published for retailers and manufacturers to consider how people can safely return to work, with updated guidance for construction to publish later this week.

The documents, which are among the first for a number of specific sectors, have been developed in consultation with business, trades unions and regulators. It will provide advice on essential equipment and services needed to create the conditions for safer workplaces.

Companies are expected to undertake a robust risk management approach that has been developed and maintained through joint working with employees. This will offer assurances to workers when the time is right to return to work.

Working to the phased approach in the route map on easing lockdown published last week, it details the steps required for businesses, acknowledging that some will face more complications when reopening than others, while also considering the impact on employees.

Economy Secretary Fiona Hyslop said: “Many businesses have been adapting to new ways of working with a significant proportion of staff working from home.

“While many people will continue with this, there are areas where it is not possible. We are listening to how businesses have made changes and in discussion with them to see how these changes can be safely applied to allow reopening.

“We’ve been working in partnership with industry, trades unions and regulators in around 14 sectors and will publish more sector-specific guidance over the next few weeks.

“However, I want to be clear that the journey doesn’t end once the guidance is published. This is just the starting point and these documents will continually evolve, where required, based on public health evidence and feedback from industry and trade unions.

“Guidance on its own, will not create safe working environments. We continue to work closely with the key enforcement agencies – the Health and Safety Executive, local authorities and Police Scotland – to ensure a joined up approach to the enforcement and monitoring of workplace public health measures.

“We are already supporting businesses through our unique package of support totalling £2.38 billion which reflects the specific needs of our economy. Our recovery will be an opportunity to renew our economy and build our resilience and future prosperity.”

Coronavirus (COVID-19): manufacturing sector guidance

Coronavirus (COVID-19): retail sector guidance

Coronavirus (COVID-19): guidance for customers

COVID-19: Scotland’s route map for transitioning through and out of the crisis

Coronavirus (COVID-19): safer work places statement – Joint statement by the Scottish Government, Police Scotland, Health and Safety Executive and local authorities on safe workplaces.

Guides from the Health and Safety Executive provide useful sources of information:

 

‘A Better Recovery’: TUC plan to get Britain back on road to a healthy economy

The TUC has set out how the UK can recover from the coronavirus economic crisis, stop the despair of mass unemployment and set working families on a path to prosperity.   

Alongside the report, the TUC publishes analysis showing that the fastest recoveries from economic crises in UK history were based on investment for growth, not cuts to services, deregulation and tax breaks for millionaires and bosses.

75 years on from VE Day, the UK should emulate the post-war recovery  

TUC analysis shows that the decade of investment for growth (1947-57) that followed World WarTwo achieved an average growth rate of 3.3% But the decade of cuts (2009-19) that followed the bankers’ crisis achieved average growth of just 1.9%.

These examples are part of a wider pattern for the UK’s responses to economic crises over the last century. The UK recovers better and faster when the approach is investment for growth, prioritising workers’ wages, strong public services, a decent safety net and building the capacity of both private and public sectors.

Approaches based on cuts to spending only serve to hold back the whole economy. This can be seen not only during 2009-2019, but also during 1921-31, when severe cuts meant growth averaged just1.9%.

In both 1921-1931 and 2009-2019, slow growth led to higher national debt. By contrast, periods of recovery based on investment for growth have reduced national debt, because they are successful at generating broad growth and making the country wealthier.

A plan to get Britain growing out of the crisis – and stop mass unemployment  

The pandemic alone did not cause this economic crisis. It was made worse by a decade of austerity and failure to strengthen the UK’s economy. Choosing the wrong approach to recovery now risks embedding low growth, long-term unemployment and all the social ills that go alongside.

An investment for growth approach means taking action on six key areas: 

  1. Decent work and a new way of doing business: New business models based on fairer employment relationships. A fairer share for workers of the wealth they create, with a higher minimum wage and new collective bargaining rights.
  1. Sustainable industry: Economic stimulus for a just transition to net zero carbon. Rebuilding the UK’s industrial capacity with modern tech and training in new skills.
  1. A real safety net: Reforms to social security to provide help faster and prevent poverty. A job guarantee scheme so everyone can work and long-term unemployment does not take hold.
  1. Rebuilding public services: Bringing our public services back to full strength, with decent pay for those who looked after us in the crisis, and a new focus on good jobs and direct employment in social care.
  1. Equality at work: Specific actions to make sure women, disabled people and BME groups do not suffer disproportionately from the impact of the coronavirus recession.
  1. International solidarity: New international rules must prioritise decent jobs and public services for all.

The evidence from the post-war recovery is that this investment for growth recovery plan can pay for itself. Millions of working families with higher disposable income create the economic demand needed for strong growth and healthy public finances. Stronger public services and an effective safety net will support people to start and grow businesses, and will better protect against a future pandemic.

TUC General Secretary Frances O’Grady said: “The UK’s weak economy and ten years of cuts left our country unprepared for coronavirus. Only the dedication of millions of individual workers kept our country going.  

“Let’s learn the lesson. Together, we can work our way safely out of this recession. Let’s make sure everyone has a decent job, with fair pay and security for their family. Let’s thank our key workers with the pay rise they have earned. And let’s not consign millions of our fellow citizens to the despair of unemployment.

“Today the TUC publishes our plan for recovery. At its heart is good jobs. Jobs in a reborn UK manufacturing sector. Jobs in a social care sector finally getting some respect. Jobs in the green tech of the future. Let’s rebuild our country through hard work, determination and investment in all our futures – not cuts to spending, deregulation and tax breaks for millionaires and bosses.”

She added:  “Seventy-five years ago, Britain was bloodied, battered – and broke. Yet after the war Britain’s economy grew faster than ever before. We did it not by pay freezes and cuts, but making the priority decent jobs for everyone, new homes, infrastructure and a new national health service.   

“So let’s channel the spirit of 1945. Coronavirus doesn’t have to equal mass unemployment and a poorer, meaner country. We can do what the post-war generation did: grow our way out of this crisis and build a better life for everyone.”

TUC Report ‘A Better Recovery’

Five Million Workers Uncertain of Post-Covid Role

Woman with notepad and laptop

A quarter (24%) of the UK workforce are learning new skills to mitigate against coronavirus uncertainty 
• Concerns for job security as 5 million expect the pandemic to dramatically change their role
• Younger employees are spearheading the distance learning boom, but want more direction from employers in bid to ensure their skills become valued assets
• Course enrolments during lockdown on The Open University’s OpenLearn platform have exceeded 950,000
• OU is urging organisations to harness this appetite for learning to adapt for the future and retain valuable talent

Covid-19 is expected to significantly change the skills required for as many as 5 million job roles across the UK, driving a surge in employees seeking out distance learning opportunities, according to The Open University

With coronavirus uncertainty affecting half (49%) of current job roles across the UK, a quarter (24%) of employees have taken on additional learning opportunities to boost their employability and protect the value of their skills.

The results suggest that younger employees are particularly fearful that their skills could become obsolete. Over a third (39%) of 18-34 year-olds agreed that they would put their own money towards development opportunities if it made them more employable.

However, for all the hunger for professional development, a quarter of employees (23%) admitted that they would like to have more direction from their employers when it comes to learning new skills, with younger team members again (38%) the most keen to have steer from their leaders on how to remain employable post-coronavirus.

OpenLearn homepage screengrab

Data from one of the UK’s largest free learning sites, The Open University’s   OpenLearn, backs up the findings. The site has logged over 950,000 course enrolments during lockdown, taking it beyond the 3.25 million mark since its launch. Specialist work-focused courses such as Leadership and Followership have proved particularly popular, in addition to modules designed to boost fundamental professional skills such as workplace communication.

In April, the Scottish Government and Skills Development Scotland launched a portal with the support of the OU in Scotland in response to the COVID-19 pandemic to support furloughed workers. The site on www.myworldofwork.co.uk was launched on 27 April by the First Minister in her daily televised COVID-19 briefing.

Across the board workers are investing in ever-green capabilities that will help them retain value to their employers in the long-term, as well as skills that will help them manage the current digital landscape. The majority of those who have taken on additional learning opportunities during lockdown have focused on developing managerial skills (51%), whilst just under a quarter (23%) have prioritised digital skills such as learning how to use new software.

While the OU welcomes this rise in independent study, the university is urging employers to make the most of the appetite for new skills development and utilise the advantages of online learning for remote employees, to cultivate the skills they are likely to require in the years to come.

Susan Stewart, Director of The Open University in Scotland said: “With the UK approaching a recession and the economic uncertainty that this will bring – the time to invest in skills is now.

“The world of work is changing and it’s clear that employees are recognising this and prioritising the development of their own skill sets to prepare for the ‘new normal’.

“With OpenLearn, employees can enrol on free courses that reward them with certificates and digital badges, helping them signpost their development and the value of their skills to their employers.

“Employees will still need direction from their employer if they are to acquire the new skills needed for post-lockdown business. Employers must embrace lifelong learning as a necessity for growth and ensure that teams stay engaged, potential skills gaps are tackled proactively and the associated risk of losing valuable talent is minimised.”

Scotland Secretary: Save Our Strawberries!

The UK Government and Prince of Wales have urged students and furloughed workers to apply for seasonal farm work.

As part of efforts to support British farmers and growers to recruit workers throughout the harvest period, the UK Government launched the Pick for Britain website in partnership with industry to help match up available opportunities with local jobseekers.

Scotland Secretary Alister Jack said: “Many of Scotland’s farms, in particular our soft fruit growers, rely on seasonal labour. As we near peak harvest time I urge jobseekers to sign up for this crucial work at the Pick for Britain website or the GOV.UK Find a job platform.

“I am in no doubt British workers and students will seize the opportunity to feed the UK and help the economy in these most challenging of times. Together, the UK Government, industry and workers will save the Scottish strawberry and our other delicious produce.”

The UK Government has already confirmed that those who have been furloughed from their jobs due to the coronavirus and who are contractually allowed to work for another employer can take on this seasonal work while continuing to receive 80% of their salary from the government.

Interested parties should continue to check the Pick for Britain website regularly as it will continue to be updated with new opportunities as the demand for fruit and vegetable pickers grows over the coming months.

British workers will continue to have the opportunity to make some extra money and help to feed the nation right up until the autumn months.

Industry best practice guidance is available for growers to help ensure workers are safe and protected in their roles during the pandemic.

Edinburgh MSP raises concerns over UK-wide companies encouraging return to work

An SNP MSP has urged businesses in Scotland not to call staff back to work early while the coronavirus lockdown remains in place.

Gordon MacDonald, MSP for Edinburgh Pentlands, raised concerns that some organisations which operate in Scotland are now encouraging employees to return to work, contrary to official Scottish Government advice.

The UK government is asking those who cannot work from home in England to start returning to the workplace. But the First Minister said she was “not yet encouraging more people to go back to work” in Scotland so that we can continue to protect our NHS and save lives.

Scottish businesses will be able to reopen as soon as they can safely do so, and the Scottish Government is working with employers and trade unions to set out how staff could return to work safely and as soon as possible.

Gordon MacDonald MSP said: “The Scottish Government has been clear and consistent in its advice to stay at home except for essential purposes, and is not yet encouraging people to go back to work so that we can protect our NHS and save lives. 

“However, it is concerning that some UK-wide companies, which have sites and employees based in Scotland, appear to be encouraging employees to return to work.

“It’s absolutely vital that the UK Government makes it clear that companies should following official guidelines from the devolved administrations, now that slight variations between Scotland, Wales, Northern Ireland, and England exist.

“We still have a long way to go to overcome this crisis. I would ask that all employers in Edinburgh and across Scotland follow Scottish government guidance, and I am very grateful that the vast majority of employers have been doing so throughout this pandemic.”

First Minister: further action to tackle ’employment challenge created by Covid’

Statement given by the First Minister Nicola Sturgeon at a media briefing in St Andrew’s House on Tuesday 19 May:

Good afternoon everybody. Thank you for joining us. I want to start – as I always do – by updating you on some of the key statistics in relation to Covid-19 in Scotland.

As at 9 o’clock this morning, there have been 14,655 positive cases confirmed – an increase of 61 from yesterday.

A total of 1,447 patients are in hospital with Covid-19 – 969 who have been confirmed as having the virus, and 478 who are suspected of having Covid. That represents a total increase of 20 from yesterday, but within that a decrease of 36 in the number of confirmed cases.

A total of 59 people last night were in intensive care with either confirmed or suspected Covid 19. That is a decrease of 4 since yesterday.

I am also able to confirm today that since 5 March, a total of 3,408 patients who had tested positive for the virus have been able to leave hospital.

Unfortunately though I also have to report that in the last 24 hours, 29 deaths have been registered of patients who had been confirmed through a test as having Covid-19 – that takes the total number of deaths in Scotland, under that measurement, to 2,134.

Tomorrow we will have the latest publication from National Records of Scotland, which include not only people that have died having tested positive but all those deaths where Covid-19 has been mentioned on a death certificate.

As always, I want to send my deepest condolences to everyone who has lost and is grieving for a loved one as a result of this virus.

I also want to thank – as I always do – our health and care workers. The whole of the country continues to be very grateful to you for the extraordinary work that you are doing in these very challenging circumstances.

I have two items I want to briefly update on today. The first relates to the publication this morning of the latest employment figures in Scotland. These are for the period from January to March of this year. These are the first figures that include any of the period of the Covid-19 crisis.

They show that 113,000 people in Scotland are now unemployed – that is up from just under 100,000 in the previous three months.

That is an unemployment rate of 4.1%. Now, by historical standards, that actually is still a relatively low rate but of course it is important to stress that these figures, since they only extend up to the end of March, do not reflect the full economic impact of the pandemic.

They undoubtedly further demonstrate the need to carefully get our economy moving again as quickly as we are able to do that safely. And they underline the continuing need for government action to support the economy, and to help people keep their jobs or to enter or re-enter the workforce.

We know that the essential public health measures that we have had to take to deal with what is a public health emergency, are in themselves creating an economic emergency and that will have impact on people’s jobs, living standards and inequalities in our society.

And although the Job Retention Scheme has offered some relief to many employers and employees, I am very aware that many people will be deeply concerned about the future of their livelihoods.

That is why we have already allocated more than £2.3 billion to support businesses and protect livelihoods, and it is why we have welcomed so warmly many of the measures taken by the UK Government –including the Job Retention scheme.

In addition, Skills Development Scotland – as I discussed last week – has expanded its support for people seeking training or employment by establishing a phoneline and online service. The new online service – which highlights links to free courses which are available – has received 120,000 visits since it launched just over three weeks ago.

Today we are taking further action to tackle the employment challenge created by Covid.

Our Enterprise and Skills Strategic Board – which was first established 2 ½ years ago – will co-ordinate rapid action across our enterprise and skills agencies.

In doing so, it will ensure that our actions, now, are helping to equip people with the skills they need for the future. It will report back to us in June on what additional measures we need to take.

However I can confirm today that we will be investing a further £33 million to support people back to work as we gradually get the economy opened up again.

This initial  funding – most of which will be allocated to Fair Start Scotland, our devolved employability service –  will have a particular focus on helping those most adversely affected in times of economic downturn –  which are young people, disabled people and lone parents.

Today’s announcement is one further action amongst many in our efforts to tackle the economic impacts of this crisis, but it is, I think, an important one.

We know all too well from previous recessions that the longer people stay jobless, the greater the chance of further impacts – their skills can deteriorate, their confidence can fall, and that in turn can have an impact on future prospects.

We also know that these effects are of course bad for individuals – especially young people – and that they are also damaging for the economy as a whole. And that means that when an upturn comes, when the economy starts to recover, employers can find it more difficult to hire the people they need.

For all of these reasons, we are determined to do everything we can to protect Scotland’s workforce; to minimise – as far as we can  – the increase in unemployment; and to ensure that we are ready for a sustainable recovery. Today’s actions represent a further step in helping us to do that.

The second issue I want to talk about relates to the fact that this week is Mental Health Awareness Week. This year’s theme is kindness.

In many ways that’s especially appropriate right now. Kindness should, I think, be one of the core values of any good society.  And, as I suspect most of us have experienced in recent weeks, even small acts of kindness can make a huge difference to the way someone is feeling.

We have been aware throughout this crisis of the impact that Covid-19, and our lockdown measures, are likely to have on people’s mental health.

That is why we have expanded NHS 24’s telephone and online services to support mental health; it’s why we established a National Wellbeing Hub to support the mental health of NHS and social care staff; and it’s also why we launched the “Clear Your Head” campaign, which you may have seen in the media.

Clear Your Head provides practical advice on how to stay active, keep connected with friends and family, and create healthy routines to help get through this crisis.

Today we are making a further investment to support the mental health and wellbeing of parents and carers in particular.

Solihull Online is a programme that helps parents and carers to learn about what their  child may be going through, and developing nurturing and supportive relationships. From today, all parents and carers in Scotland will have access to the programme and if you are interested in this you can find more information by going to ParentClub.scot.

The final point I want to make, is that one of the most important things to remember during Mental Health Awareness Week, is that it’s okay not to feel okay – and that help is available.

You can speak to someone if you need to, and I would encourage you to do so. The Clear Your Head website – clearyourhead.scot – brings together our information about support that is available for mental health.

So please have a look at the website during the Awareness Week. And please, continue, as far as all of us can, to show kindness to each other as we try get through this crisis together.

Before I hand over to the CMO, I want to emphasise once again our key public health measures.

As is said yesterday, on Thursday this week we will publish a routemap, setting how on a phased basis, we will ease the lockdown while continuing to suppress the virus.

My hope and intention is that we will take the first concrete steps on that journey next week.

But, we will increase both the likelihood and the extent of that by sticking to the rules now.

Please stay at home except for essential purposes- such as daily exercise, going to essential work that you can’t do from home, or buying essential items.

You can now exercise more than once a day – but when you do leave home, stay more than 2 metres away from others. And do not meet up with people from other households.

Please think about wearing a face covering if you are in a shop or on public transport. And remember to wash your hands thoroughly and regularly.

Finally, if you or someone else in your household has symptoms of Covid-19, then you should stay at home completely. Those symptoms are a high temperature, a persistent cough, or now a change or loss of smell or taste.

For now, these restrictions do remain essential.

They are helping us to slow down the spread of the virus, to protect the NHS, and to save lives.

So thank you once again, to everyone, for your cooperation.

Young workers hardest hit by coronavirus downturn

Over one in three 18-24 year olds, and three in ten workers in their early 60s, are receiving less pay than they did at the start of the year, compared to less than a quarter of workers aged 35-49, according to new Resolution Foundation published today.

The report is published on the day it was announced that UK unemployment rose by 50,000 to 1.35 million in the three months to March, when the effects of the coronavirus lockdown started to affect the economy.

The report, Young workers in the coronavirus crisis, based on a survey of 6,005 UK adults in early May and supported by the Health Foundation, examines how the current crisis has already affected workers of different ages in terms of their jobs, pay, hours and working conditions. It is published ahead of official labour market data today covering the three months to March this year (and only the very start of the crisis).

Previous Resolution Foundation research has shown that excluding students, young people  tend to be hit hardest during downturns, and are particularly at risk in the current one as they are more likely to work in the hardest hit sectors of the economy, such as hospitality, leisure and retail.

Looking at workers’ current earnings compared to the start of the year, the research finds that employees across all age groups are more likely to be earning less than they did in January than earning more, though young and older workers are most affected.

Among 18-24 year olds, 35 per cent are earning less than they did  before the outbreak, and 13 per cent are earning more. Employees in their early 60s are the next most likely to be receiving less pay (30 per cent), with a further 9 per cent receiving more pay. By contrast, 23 per cent of 35-49 year olds are earning less, while 5 per cent are earning more.

The research shows that young people are also the most likely to have lost work – though other age groups have been affected.

One in three 18-24 year olds employees have lost work, either through being furloughed (23 per cent) or losing their jobs completely (9 per cent).

One in five (20 per cent) employees in their late 20s (aged 25-29) have either been furloughed or lost their jobs, along with around one in six (18 per cent) workers in their early 60s (aged 60-64).

Employees aged 35-44 are the least likely to have been furloughed or lost their jobs, with around 15 per cent experiencing this since the crisis began.

The Foundation says the big pay reductions and job losses for young and older employees are a huge concern, for very different reasons.

Younger workers deeply affected by the crisis today risk have their pay scarred for years to come – causing a long-term reduction in their living standards. Older workers risk being involuntary retired well before reaching their State Pension Age, or not having time to make-up their current earnings shortfall. Both risks could cause a permanent hit to their incomes through retirement.

The Foundation says that the scale of pay reductions since the crisis began would be even greater where it not for the Job Retention Scheme. The research finds around one in five furloughed employees are still receiving full pay (despite state support being capped at 80 per cent), including over a quarter of workers aged 35-44.

Finally, the Foundation says that the Government needs to start preparing its response to the next phase of the crisis, which should include policies such as Job Guarantees for young people, and broader fiscal stimulus to boost demand in the economy and raise household incomes.

Maja Gustafsson, Researcher at the Resolution Foundation, said: “Our research confirms fears that young people are being hardest in the current crisis. One in three young people have been furloughed or lost their jobs completely, and over one in three had had their pay reduced since the crisis started.

“But while young people are in the eye of the storm, they are not the only group who are experiencing big income shocks. Britain is experiencing a U-shaped living standards crisis, with workers in their early 60s also badly affected.

“That is why the Government’s strategy to support the recovery should combine targeted support to help young people into work, with more general stimulus to boost demand across the economy and help households of all ages.”

Report: Young-workers-in-the-coronavirus-crisis

The number of people claiming unemployment benefit in the UK soared to 2.1 million in April, the first full month of the coronavirus lockdown. 

The April total rose by 856,500, according to Office for National Statistics (ONS) figures.

Before the lockdown began, employment had already hit a record high before the lockdown began.

The situation is actually even worse than these desperate figures show – benefit claimant count does not include everyone who is out of work, since not all can claim assistance.

Chancellor extends furlough scheme until October

The government’s Coronavirus Job Retention Scheme will remain open until the end of October, the Chancellor announced today.

  • Coronavirus Job Retention Scheme will continue until end of October
  • furloughed workers across UK will continue to receive 80% of their current salary, up to £2,500
  • new flexibility will be introduced from August to get employees back to work and boost economy

In a boost to millions of jobs and businesses, Rishi Sunak said the furlough scheme would be extended by a further four months with workers continuing to receive 80% of their current salary.

As we reopen the economy (at least in England – Ed.), we need to support people to get back to work. From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff.

The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.

Chancellor Rishi Sunak said: “Our Coronavirus Job Retention Scheme has protected millions of jobs and businesses across the UK during the outbreak – and I’ve been clear that I want to avoid a cliff edge and get people back to work in a measured way.

“This extension and the changes we are making to the scheme will give flexibility to businesses while protecting the livelihoods of the British people and our future economic prospects.”

New statistics published today revealed the job retention scheme has protected 7.5 million workers and almost 1 million businesses.

The scheme will continue in its current form until the end of July and the changes to allow more flexibility will come in from the start of August. More specific details and information around its implementation will be made available by the end of this month.

The government will explore ways through which furloughed workers who wish to do additional training or learn new skills are supported during this period. It will also continue to work closely with the Devolved Administrations to ensure the scheme supports people across the Union.

The Chancellor’s decision to extend the scheme, which will continue to apply across all regions and sectors in the UK economy, comes after the government outlined its plan for the next phase of its response to the coronavirus outbreak.

The scheme is just one part of the government’s world-leading economic response to coronavirus, including an unprecedented package for the self-employed, loans and guarantees that have so far provided billions of pounds in support, tax deferrals and grants for small businesses.

Today the UK government is also publishing new statistics that show businesses have benefitted from over £14 billion in loans and guarantees to support their cashflow during the crisis.

This includes 268,000 Bounce Back Loans worth £8.3 billion, 36,000 loans worth over £6 billion through the Coronavirus Business Interruption Loan Scheme, and £359 million through the Coronavirus Large Business Interruption Loan Scheme.

Mike Cherry, National Chairman of the Federation of Small Businesses, said: “The Job Retention Scheme is a lifeline which has been hugely beneficial in helping small employers keep their staff in work, and it’s extension is welcome.

“Small employers have told us that part-time furloughing will help them recover from this crisis and it is welcome that new flexibility is announced today.

BCC Director General Adam Marshall said: “The extension of the Job Retention Scheme will come as a huge help and a huge relief for businesses across the UK.

“The Chancellor is once again listening to what we’ve been saying, and the changes planned will help businesses bring their people back to work through the introduction of a part-time furlough scheme. We will engage with the Treasury and HMRC on the detail to ensure that this gives companies the flexibility they need to reopen safely.

“Over the coming months, the government should continue to listen to business and evolve the scheme in line with what’s happening on the ground. Further support may yet be needed for companies who are unable to operate for an extended period, or those who face reduced capacity or demand due to ongoing restrictions.”

Dame Carolyn Fairbairn, CBI Director-General, said: “The Chancellor is confronting a challenging balancing act deftly. As economic activity slowly speeds up, it’s essential that support schemes adapt in parallel.

“Extending the furlough to avoid a June cliff-edge continues the significant efforts made already and will protect millions of jobs.

“Introducing much needed flexibility is extremely welcome. It will prepare the ground for firms that are reawakening, while helping those who remain in hibernation. That’s essential as the UK economy revives step-by-step, while supporting livelihoods.

“Firms will, of course, want more detail on how they will contribute to the scheme in the future and will work with government to get this right.

“Above all, the path of the virus is unpredictable, and much change still lies ahead. The government must continue to keep a watchful eye on those industries and employees that remain at risk. All schemes will need to be kept under review to help minimise impacts on people’s livelihoods and keep businesses thriving.

“The greater the number of good businesses saved now, the easier it will be for the economy to recover.”

Commenting on the extension of the government’s job extension scheme today, TUC General Secretary Frances O’Grady said: “We are pleased ministers have listened to unions and extended the job retention scheme to the autumn. This will be a big relief for millions.  

“Changing the rules to allow part-time working is key to enabling a gradual and safe return to work. And maintaining the rate at 80% is a win for the pay packets of working families.

“As the economic consequences of Covid-19 become clear, unions will keep pushing for a job guarantee scheme to make sure everyone has a decent job.”

Anneliese Dodds MP, Labour’s Shadow Chancellor, said: “The furlough scheme is a lifeline for millions. The Government was right not to pull it away.

“It is welcome that the Chancellor has heeded the call by Labour, trade unions, and businesses for more flexibility in the scheme, to support employees to go back to work part-time.

“The government must clarify today when employers will be required to start making contributions, and how much they’ll be asked to pay. If every business is suddenly required to make a substantial contribution from the 1st August onwards, there is a very real risk that we will see mass redundancies.”

Extension to Furlough Scheme could cost the Government £70 billion

The Chancellor has extended the current Furlough scheme until the end of October but he now has a huge challenge to get this right, say leading tax and advisory firm Blick Rothenberg.

Heather Self a partner at the firm said: “He needs to achieve a “Goldilocks” effect – not too hot, and not too cold.  If he provides too much it will be very expensive and may discourage firms from reopening. If he provides too little thousands of people could lose their jobs.

She added: “It is going to be a turbulent time for the labour market in the Autumn. Some sectors, such as the hospitality and tourism sector, are likely to see significant redundancies, while others such as construction and financial services will be relieved to see a gradual winding-down of support.

From the announcement today, we now know that:

–          Support will be continued to the end of July in full, with employers required to contribute after that date.

–          Part time working will be permitted, but only for some employees

–          The same level of overall support – 80% of wages up to a maximum of £2500 a month – will be maintained

Heather said: ” As the furlough scheme is reduced the Government needs to incentivise business and come up with creative ideas about how business can keep going and retain staff.

“The Chancellor could not go on paying out billions of pounds indefinitely, and everyone understands that, but there needs to be much more joined up thinking between Government and business.”

So far, some 7.5m employees have been furloughed, at a cost approaching £10bn.

The expected costs to the end of July are likely to be around £50bn, with the extension at a reduced level to the end of October perhaps costing a further £20bn.  These are very significant sums, amounting to around 10% of total Government receipts.

As Britain seeks to get back to work, the pressures on different sectors will be very uneven.

While some sectors, such as construction and financial services, are getting back to work, others such as leisure and hospitality will be much slower to recover.

And the position in the tourism and heritage sectors is likely to become critical if they lose the whole of the Summer season.

Heather Self said: “Enabling part time work is welcome, as it will permit a gradual return to work.  But the Chancellor said this would only be available to businesses “currently using” the scheme – it is not clear what the cut-off date will be for businesses still considering whether they need to furlough employees.

“The Chancellor needs to pay attention to the needs of different sectors, difficult though this may be.  Leisure and hospitality businesses are unlikely to be able to cope with reopening fully by the end of July, and may need to contemplate redundancies.

“Additional support beyond the furlough scheme will be needed for a long time – whether loans such as the CBILS scheme, or grants, or incentives such as an increase in the Employment Allowance to encourage employers to maintain their staff levels, or even take on new employees.”

Last orders? CAMRA responds to extended lockdown

Responding to the Scottish Government’s strategy to exit lockdown measures, which state that gathering in pubs is likely to be banned or restricted ‘for some time to come’, CAMRA Director for Scotland Sarah Crawford said: “While the Government must follow scientific advice and do what is right to keep people safe, this will undoubtedly be a huge blow for pubs and breweries. 

“The pub and brewing sector was among the first to be hit by the lockdown and it is set to be among the last to get back to normality. One thing many people are looking forward to when all this is over is going down the pub to meet friends and family for a drink.

If the Scottish and UK Governments do not make sure that our local pubs and breweries receive all the financial support that they need to weather this crisis, we risk not having them around at all when all this is over.”

Getting tourism ready for recovery

A call has gone out to those with skills, expertise and experience, who are currently ‘furloughed’ or on a reduced working pattern, to help address the challenges facing Scotland’s tourism sector. 

In 2017, the sector provided employment for eight out of every 100 Scottish workers, but thousands of tourism business owners are naturally feeling anxious about the future in the wake of coronavirus.

The call to arms – ‘Getting ready for recovery’ – has been championed by around 120 alumni of the Destination Leaders Programme (DLP), a joint initiative for tourism industry professionals delivered for the past seven years by Edinburgh Napier University and Scottish Enterprise.

DLP alumni to mentor furloughed tourism workers along the road to recovery

The aim of the furlough initiative is to help small tourism businesses recover by providing targeted support and mentoring that can enable them to take forward identified actions, outputs and outcomes during this period of enforced reflection.

Professor Jane Ali-Knight (above) of Edinburgh Napier University’s Business School, explained: “It is intended that involvement will fall under the acceptable category of professional training for ‘furloughed’ professionals, and will help maintain and extend their professional skills, expertise, experience and network.”

This will mean projects taken up will be focused on objectives that underpin The Scottish Tourism Strategy to 2030, as well as wider destination leadership, development, management, industry resilience and recovery, and destination promotion.

Aileen Lamb from Scottish Enterprise said: “The objective is to support recovery and potential restructure of the Scottish tourism industry. We want to use this opportunity to encourage innovative thinking across a range of themes.

“Most importantly we want to encourage the supportive and adaptable nature of tourism professionals to shine. The initiative will include a weekly online session called DLP Assemble giving businesses a collaborative place to gather regular updates on initiatives and government funding as we look towards the point when restrictions can be lifted.”

Ali-Knight says: “We will guide participants on themes and tasks arising through the DLP Assemble initiative, to help form project groups with a good mix of experience and expertise, and to match groups with mentors and professional support.”

Kenneth Wardrop, a fellow DLP founder, says: “We want to act quickly, working with existing groups such as ETAG [Edinburgh Tourism Action Group] and STERG [Scottish Tourism Emergency Response Group] in order to start applying practical thinking and solutions in response to the evolving and devastating impacts on Scotland’s tourism industry.”

Edinburgh Napier University is also running a free online course through FutureLearn to help small tourism businesses understand the power of data they hold or can access in helping them market themselves more effectively at this critical time.

‘Understanding Data in Tourismis open now for people to register for the next starting point, on 16 May, by visiting: 

futurelearn.com https://www.futurelearn.com/partners/edinburgh-napier-university