The recent announcement by the Integrated Joint Board (IJB) regarding the disinvestment from up to 64 community organisations as part of its recovery plan for 2025/26 has ignited significant outrage among Third Sector, including members of the Edinburgh Community Health Forum (ECHF).
This drastic cut threatens the very fabric of our community support systems and undermines our collective commitment to health and wellbeing in Edinburgh, said ECHF’s Strategic Development Manager, Stephanie-Anne Harris.
Stephanie-Anne vehemently criticised the decision, stating: “This disinvestment will lead to the closure of numerous charities and an increased reliance on statutory services, including the NHS and Council.
“Furthermore, it contradicts the Scottish Government’s and Public Health Scotland’s advocacy for prevention and early intervention strategies.
“Evidence overwhelmingly supports that investing in prevention is one of the most cost-effective methods to improve health outcomes and reduce inequalities.
“This short-term approach to achieving savings is fundamentally misguided.”
Historically, core funding for the Third Sector was managed by the Council before being transferred to the IJB.
The current proposed cuts pose a severe threat to organisations that provide essential services to some of Edinburgh’s most vulnerable residents.
Catriona Windle, Chair of ECHF and CEO of Health All Round, a charity dedicated to supporting residents in Gorgie Dalry, Saughton, Stenhouse, and surrounding areas, added: “We call for an immediate halt to cuts scheduled for 2025 and urge the IJB to engage in meaningful discussions with the sector about sustainable funding solutions.
“While we recognise the need for budgetary considerations, we cannot afford to compromise on the vital support that Third Sector organisations provide. We propose delaying cuts until September 2025 to allow for a proper conversation about the future.
“The IJB must recognise that resourcing for the Third Sector is not non-essential; it is crucial for the wellbeing of our communities.
“We implore Council leaders and the IJB to consider resuming full responsibility for funding these vital services or to engage the Third Sector in developing a strategic funding model that ensures ongoing investment in our collective health.”
EDINBURGH Integration Joint Board meets on Friday 1 November at 10am in the Dean of Guilds Room at the City Chambers.
See belowfor meeting papers – including details of the cuts being recommended:
HOLYROOD and WESTMINSTER GOVERNMENTS RESPOND TO PETROINEOS’ DECISION TO CLOSE OIL REFINERY
The Scottish and UK Governments have announced a joint investment plan for Grangemouth following Petroineos’ decision to decommission its oil refinery and pledged to work together for an industrial future for the site.
The company today confirmed it will cease refining oil at the site during the second quarter of 2025 onwards due to global market pressures and competition from bigger, more modern and efficient sites in the Middle East, Asia and Africa.
This follows years of loss-making, with the company stating that it has lost more than $775 million since 2011 despite having invested more than $1.2 billion to maintain the refinery’s safe operation.
UNITE trade union general secretary Sharon Graeme said the closure is ‘an act of industrial vandalism, pure and simple’.
The Scottish Government has been working with the UK Government to deliver an investment plan that will help secure Grangemouth’s industrial future and protect its skilled workforce.
This includes:
£100 million package. This includes £20 million in joint funding from the Scottish and UK Governments announced today on top of £80 million in joint funding from the two governments for the Falkirk and Grangemouth Growth Deal. This funding will support the community and its workers, investing in local energy projects to create new opportunities for growth in the region. Over the next 30 years, it is estimated that the Falkirk & Grangemouth Growth Deal will deliver over £628 million in economic benefits, with an employment impact of 1660 net jobs across the Falkirk Council area.
Immediate career support for workers. Scottish and UK Government to provide tailored support that will help affected workers in finding new employment.
Investment in the site’s long-term future. The £1.5 million joint-funded Project Willow study has identified a shortlist of three credible options to begin building a new long-term industry at the refinery site, including low carbon hydrogen, clean eFuels and sustainable aviation fuels.
It comes as the UK Government confirmed today it stands ready to engage on how the National Wealth Fund could back projects that have the potential to yield a viable long-term future for the site.
Ministers have confirmed that both governments will put local businesses, workers, and trade unions at the heart of decision-making on determining the region’s industrial future.
Cabinet Secretary for Net Zero and Energy Gillian Martin said:“My immediate thoughts are with the workforce. This is a very challenging time for them and their families, and we will support every worker affected by this decision.
“We are working very closely with the UK Government and together we have communicated our disappointment to Petroineos today.
“The Scottish Government has consistently made clear our preference was for refining to continue as long as possible, and we have continued to press the shareholders for a positive decision until the 11th hour.
“This significant package of support combines immediate help for affected workers and a long-term contribution to ensure that Grangemouth continues to thrive in the future. We are clear that there should be a just transition for the refinery site and we remain committed to bringing forward low carbon opportunities that will sustain skilled jobs across the wider area for many years to come.”
UK Government Energy Secretary Ed Miliband said:“It is deeply disappointing that Petroineos have confirmed their previous decision to close Grangemouth oil refinery.
“We will stand with the workforce in these difficult times, that is why we are announcing a package of investment to help the workforce find good, alternative jobs, invest in the community and serve a viable industrial future for the Grangemouth site, with potential for future support from the National Wealth Fund.
“Unlike in the past, the government is working in lockstep with the Scottish Government across every front. Workers and their families should be in no doubt this is a Government that stands with workers, trade unions, and businesses to fight for jobs and investment in Scotland.”
Secretary of State for Scotland Ian Murray said: “I understand this is a worrying time for the workers at the refinery and the UK Government is working closely with the Scottish Government and Petroineos to ensure they are being supported.
“Both governments have invested in Project Willow to examine how Grangemouth remains an energy hub in Scotland. The enhanced £100 million Falkirk and Grangemouth Growth Deal announced today will help ensure the long-term future of the site – a key part of our journey to clean energy by 2030.
“We remain committed to working together looking at how we can help the area build on its skilled workforce and local expertise to boost economic growth.”
The Energy Secretary Ed Miliband and Cabinet Secretary for Net Zero and Energy Gillian Martin have taken joint action to urgently engage with Petroineos, industry experts, and trade unions in exploring all possible solutions to secure a viable industrial site for the future, in the event of a decision from the company to close the refinery.
Ministers continue to urge the company to keep refining open for as long as possible, emphasising the company’s responsibility to its employees and the community.
As the company has made clear that there is no viable commercial future for the refinery business, the Scottish and UK Governments have today unveiled a package to help the workforce, invest in the area and secure a viable industrial future for the Grangemouth site, as one of Scotland’s key industrial heartlands.
The company’s decision to convert to an import terminal means that their fuel supply will now be maintained by importing refined products directly, rather than importing crude oil to refine on site.
This will form part of the UK’s diverse and resilient fuel market, covering both imported fuel and refined oil production. Since 2013, the UK has been a net importer of refined products, with imports accounting for 51% of UK demand for all petroleum products in 2023.
In response to today’s news from the company, the Energy Secretary Ed Miliband will co-chair an immediate virtual meeting of the Grangemouth Future Industry Board, with Cabinet Secretary for Net Zero and Energy Gillian Martin, and the UK Government Secretary of State for Scotland Ian Murray. Ministers will discuss next steps with local industry leaders, Falkirk Council, trade bodies and unions – ahead of an in-person meeting of the Grangemouth Future Industry Board later in Autumn.
‘AN ACT OF INDUSTRIAL VANDALISM’
Unite, the UK’s leading union, has vowed to explore all avenues to preserve high quality jobs at Grangemouth following the announcement that PetroIneos will go ahead with its plans to close its refinery.
PetroIneos confirmed today that it intends to close the refinery at Grangemouth between April – June 2025 and become an import and export only facility. The announcement places in jeopardy the jobs of the 500 workers directly employed (represented by Unite) at Grangemouth and thousands more in the supply chain.
There is widespread fury within the workplace due to the failure of the bosses and politicians to ensure the future of the site.
Unite general secretary Sharon Graham said: “This is an act of industrial vandalism, pure and simple.
“This dedicated workforce has been let down by PetroIneos and by the politicians in Westminster and Holyrood who have failed to guarantee production until alternative jobs are in place.
“This is now the last chance for this Labour government to show whether its really on the side of workers and communities. The road to net zero cannot be paid for with workers’ jobs.
“The government must put its money where its mouth is to ensure the jobs are safeguarded. This is the only refinery left in Scotland and it must remain. There are alternative plans.
“This is yet another example of workers paying for a crisis they did not create while billionaire owners laugh all the way to the bank “
Unite is now in high level talks with the government about alternatives for the site including the production of sustainable aviation fuel.
Derek Thomson, Unite Scottish Secretary said: “The sole objective for Unite remains that the jobs at the refinery and thousands more in the supply chain are protected by any means.
“Unite does not accept that the future of the refinery should have been left to the whim and avarice of shareholders. The complex is critical to the nation’s manufacturing base and energy security. The governments involved cannot simply hide behind the convenient smokescreen that this is a commercial decision which they couldn’t influence.”
The Grangemouth complex is of critical strategic economic and infrastructure importance for Scotland and the UK.
It is the only oil refinery in Scotland and it provides four per cent of its GDP and eight per cent of the nation’s manufacturing base.
The Grangemouth support package announced by the Scottish and UK Governments today includes :–
Joint Grangemouth support package:
The Scottish and UK Governments have today confirmed a joint £100 million support package for Grangemouth.
This includes a total of £20 million in additional investments, to support the local Grangemouth community following the closure of the refinery. It covers:
The £10 million Scottish Government ‘Greener Grangemouth’ programme, that aims to deliver projects at the heart of Grangemouth’s just transition.
£10 million from the UK Government for local energy projects, as well as new skills support from the Office for Clean Energy Jobs to help the site’s workers into good clean energy jobs.
Today’s additional funding comes on top of an £80 million Falkirk and Grangemouth Growth Deal, match-funded by the two governments, to back new industries across the region.
The Growth Deal will support a range of new projects, including:
A bioeconomy plant already in the pipeline, which could use waste whisky and food in chemical production processes to reduce reliance on fossil fuels – via technology currently unavailable in the UK.
A new £9m technology centre to support the development, manufacture and use of low carbon technologies. This will help companies substitute their products and industrial processes for greener alternatives, and will be linked to wider hydrogen and carbon capture use and storage projects.
An employment hub led by one of the UK’s largest operators, Forth Ports, will help develop the skilled workforce needed to support emerging energy sectors. The move will help to drive innovation and attract new investment across sectors, such as offshore wind energy, renewable energy production, storage and distribution, and tidal power.
Immediate career support for workers:
The Scottish and UK Governments are working closely with the company, Petroineos, to provide immediate support for affected workers at Grangemouth refinery, while longer-term projects get up and running on the site.
The trade body Fuels Industry UK will ensure affected Grangemouth workers have direct access to a wide range of potential employers. The association will also work with the specialist skills provider Cogent to host job vacancies from relevant employers for the Grangemouth workforce.
Workers at the refinery will also receive tailored advice, helping them to identify new training opportunities – backed by the Scottish Government’s Partnership Action for Continuing Employment framework.
The UK Government has also confirmed that Grangemouth will be among the first areas that the new Office for Clean Energy Jobs will work with to help deliver a just transition for workers.
Project Willow:
A range of proposals to deliver a viable long-term future for the Grangemouth refinery site have been shortlisted by the UK and Scottish governments, as part of a joint-funded £1.5 million feasibility study.
The project is exploring how the region can build on its skilled workforce, local expertise and long heritage as a fuel leader in Scotland to forge a new path in clean energy production.
Following an initial research phase, the project has identified three potential industries that could be hosted on the refinery site. These are:
The production of low-carbon hydrogen.
Clean eFuels synthesised from chemical components like hydrogen or carbon dioxide
Sustainable aviation fuels which use lower carbon sources like forestry and agricultural waste, used cooking oil and carbon captured from the air to produce jet fuel.
These options will now be tested against their potential to create long-term industries in Grangemouth, support new jobs and contribute to the UK’s clean energy transition. The project will engage extensively with the local community, trade unions, businesses, and industrial experts on rapidly assessing the most viable candidates for industrial production on the Grangemouth site.
Council refuses to pass on uplift in Housing Benefit to charity housing provider as Scottish Government declares a housing emergency
Right There, a charity which helps prevent homelessness, has been forced to end its contract with City of Edinburgh Council, to provide critical housing in three locations for some of the city’s most vulnerable residents.
The charity, which was formerly called Ypeople, says this is its ‘absolute worst case scenario’, and ‘a last resort’ but after months of trying to negotiate with the Council, housing bosses are refusing to pass on its uplift in housing benefit to increase the Housing Management Payment.
The Housing Management Payment has remained unchanged since 2019 despite the cost of living skyrocketing in that time. Over the last five years, the local authority has received increased housing benefit which it refuses to pass on to providers to help deal with increased costs of running an assisted housing programme.
The housing facilities facing closure are one in Broomhouse and two residential units in Pilton. Their closure comes after the local authority failed to engage with the charity on contractual terms over recent weeks.
It will build pressure on the Council’s administration after a housing emergency was declared in the capital in November of last year, now even more so with the Scottish Government expected to announce a national housing emergency later today.
Janet Haugh, CEO of Right Theresaid: “We are devastated that we are having to pull the plug on this service, this is our absolute worst case scenario, especially when Scotland is at the brink of a national housing crisis.
“We have done everything in our power to resolve this with the Council but sadly as a charity we simply cannot absorb a projected £2.5 million deficit over the next five years and continue running this service.”
Housing Benefit levels have increased across Scotland to reflect the increased cost of living, utilities and general inflationary increases. Despite that, the Council expects Right There to subsidise the cost of an essential service despite being in receipt of additional payments to which the residents are entitled.
The project run by Right There provides accommodation support for 44 of Edinburgh’s most vulnerable people, who live with the consequences of family breakdowns, homelessness, poverty, addiction, and many other challenges. In addition, the jobs of 19 support workers are now at risk.
Janet Haughadded: “We have exhausted all avenues with the Council and bringing the contract to a conclusion by triggering the three months’ notice period is our last resort.
“Our priority now is to work with the Council to hand over the running of the programme to either the local authority or another provider to ensure as much continuity and as little distress as possible for the 44 residents affected, and the support workers whose jobs are at risk.”
Dozens of much loved pubs across Scotland in serious danger of pulling their last pint, warns GMB Union
Almost 50 Stonegate pubs across Scotland could close after the company issued a profit warning.
As GMB predicted earlier this year – and despite private equity owner TDR’s assurances to a parliamentary select committee in January – Stonegate says there is no guarantee it can continue as a going concern, as it struggles to refinance a £2.2bn debt mountain.
Stonegate is one of the largest pub companies in the UK, with more than 4,500 pubs and more than 19,000 workers, including brands like Slug and Lettuce, Yates and Walkabout.
The chain has 45 pubs across Scotland
GMB has written to Lian Byrne MP, chair of the Business and Trade Select Committee, asking him to recall TDR bosses in light of the profit warning.
Nadine Houghton, GMB National Officer, said: “TDR bosses are private equity gamblers- playing fast and loose with people’s jobs and lives.
“When their risky ventures go wrong, they swan off to their next project, leaving workers and communities to pick up the pieces.
“Now, dozens of much loved pubs across Scotland are in serious danger of pulling their last pint.
LOCAL GOVERNMENT WARNS OF JOB LOSSES AND SERVICE CUTS
COSLA has launched its campaign in advance of the Scottish Budget on 15 December – an ‘SOS call’ to Save our Services.
It is a rallying call, telling communities everything they need to know about the impact of the Scottish Government’s forthcoming budget on our council services, and our communities in the coming year.
COSLA says the SOS call reflects the extremely precarious financial situation in which Councils in Scotland find themselves, during a particularly challenging period. This is as a consequence of real-term cuts to the core budgets of Scotland’s 32 Councils over recent years.
The call comes ahead of the Deputy First Minister outlining the Scottish Budget on December 15th but reflects the reality of what the government set out in its spending plans last May.
Speaking yesterday, COSLA’s President Councillor Shona Morrison said: “There are many areas in which Local and Scottish Government work together for our communities and I fully appreciate that money is extremely tight – all Governments are having to cope with rising inflation and fuel costs.
“However, with little room left to manoeuver, the Scottish Government’s spending plans as they stand will see Council services either significantly reduced, cut or stopped altogether.
“70% of Local Government’s budget is spent on staffing, so it is inevitable that current spending plans will lead to job losses. The very serious impact of this scenario is that the critical work council staff do on prevention and early intervention will reduce significantly.”
COSLA’s Vice President Councillor Steven Heddle said: “In May, the ‘flat cash’ plans looked difficult for us. Today, with prices increasing across the board, including energy costs, and inflation sitting at almost 10% and at risk of rising still further, Local Government is now on extremely dangerous ground.
“Make no mistake, what we will now face is Councils struggling to deliver even the basic, essential services that communities rely on. To put this into perspective, the estimated £1bn gap for councils in 23/24 is the equivalent of the entire budget for early learning and childcare across Scotland or 17,500 teachers.
“A funding gap of this magnitude will have an impact on all our communities, with the most vulnerable who rely on these services suffering the worst consequences.”
COSLA’s Resources Spokesperson Councillor Katie Hagmann concluded: “We are at a crisis point like never before – the impact for communities is serious and needs to be reconsidered.
“The financial impacts for other parts of the public sector are also serious. When councils can’t focus spend on prevention, for example on preventing ill-health, services like the NHS will end up spending significantly more money when issues become more serious.
“Directors of Finance across Scotland’s Councils are sufficiently concerned about the financial sustainability of councils that they have written to the Deputy First Minister outlining their concerns.
“This really is an SOS call from Scotland’s Councils –people in communities across Scotland will be pulled into further poverty and uncertainty without adequate funding for the vital services that support them.”
TUC calls for permanent short-time working scheme to protect jobs in times of economic crisis and change
TUC says government must build on the success of furlough – and set up a permanent scheme to deal with big disruptions to jobs in the future, like the transition to net zero, future pandemics and technological change
Periods of industrial change have too often been mismanaged and led to increased inequality – a short-time working scheme would help prevent this, says TUC
Union body warns of job losses amid abrupt end to furlough scheme
The TUC is calling on the government to establish a permanent short-time working scheme as “a post pandemic legacy” to help protect working people through periods of future economic change.
The TUC says the furlough scheme, while far from perfect, is one of the major successes of government policy during the pandemic, protecting millions of jobs and livelihoods.
On the back of the success of the furlough scheme, the union body is urging government to build on furlough – “not throw away its good work” – with a permanent short-time working scheme to make the labour market more resilient in times of change and crisis.
The union body adds that because of the UK transition to net zero and the increased uptake of new technology, this is “hugely relevant”.
Case for a short-time working scheme
In a new report, Beyond furlough: why the UK needs a permanent short-time work scheme, the TUC says the case for a short-time working scheme is clear, citing significant benefits for workers, firms and government. The union body says for workers, a short-time working scheme would:
reduce the risk of workers losing their jobs in times of crisis
protect workers’ incomes – particularly as short-time working schemes are usually more generous than unemployment benefits.
prevent widening inequalities – protecting women, disabled workers and BME workers who tend to lose their jobs first in a recession due to structural discrimination
And for the government, it would:
protect against long-term unemployment, and the subsequent devastating impacts on communities
help stabilise the economy, and encourage a faster economic recovery as workers continue to spend their wages
save money, as the cost of furlough schemes is often below the cost of unemployment benefits, particularly where costs are shared with employers.
For employers, the TUC says that such a scheme would produce significant savings on redundancy, training and hiring costs, as they enable firms to keep skilled workers on their books.
The union body points out that the UK is an anomaly among developed nations in having no permanent short-time working scheme to deal with periods of industrial disruption and weak demand.
In the OECD, 23 countries had short-time working schemes in place before the coronavirus pandemic, including in Germany, Japan and many US states.
Turbulent times ahead
The TUC predicts that the UK economy is likely to face significant risks in the future – be it from climate change and the transition to net zero, new technologies such as AI, new variants or another pandemic. All could cause unpredictable and widespread disruption in the labour market – causing big spikes in unemployment and business failure.
The TUC cites failed attempts to manage industrial change in the past, which “left communities abandoned” and played a major role in the widespread regional inequality we see today.
The union body says that if the government is serious about levelling up, it will put in place a permanent short-time working scheme to prevent inequalities spiralling – adding that a short-time working scheme could play a vital role in achieving a ‘just transition’ to net zero.
Criteria for accessing scheme
The TUC says the scheme should be governed by a tripartite panel bringing together unions, business and government, which should be tasked with designing the criteria for the new scheme.
In designing the scheme, the TUC says the panel should take into account best practice from existing global schemes. The union body has set out the following conditions which it says must be in place for accessing a short-time working scheme:
Workers should continue to receive at least 80 per cent of their wages for any time on the scheme, with a guarantee that no-one will fall below the minimum wage for their normal working hours
Any worker working less than 90 per cent of their normal working hours must be offered funded training.
Firms must set out a plan for fair pay and decent jobs
Firms should put in place an agreement with their workers, either through a recognised union or through consultation mechanisms.
Firms must demonstrate a reduction in demand – which can include restructuring
Firms should commit to paying their corporation tax in the UK, and not pay out dividends while using the scheme.
The scheme should ensure full flexibility in working hours.
There should be time limits on the use of the scheme, with extension possible in limited circumstances.
TUC General Secretary Frances O’Grady said: “Everyone deserves dignity and security at work. The pandemic shows how an unexpected economic shock can wreak havoc on jobs and livelihoods with little warning.
“In a changing and unpredictable world – as we battle climate change and new technologies emerge – a permanent short-time working scheme would help make our labour market more resilient and protect jobs and livelihoods.
“Too often in the past, periods of economic and industrial change have been badly mismanaged – increasing inequalities and leaving working people and whole communities abandoned.
“Setting up a ‘daughter of furlough’ to provide certainty to workers and firms through future industrial change would be a fitting pandemic legacy.
“Furlough has been a lifeline for millions of working people during the pandemic. Now is the time for the government to build on the success of furlough with a short-time working scheme – not throw away its good work.”
Furlough warning
The call for a permanent short-time working scheme comes exactly six weeks before the furlough scheme is set to end – the date at which employers are legally obliged to start consulting on planned redundancies with their staff.
The TUC is warning the abrupt end to the furlough scheme will cause unnecessary job losses and may harm the country’s economic recovery.
Recently, aviation unions have also been raising concerns about the sudden end to the furlough scheme and the loss of jobs in the sector.
On the ending of the furlough scheme, Frances said: “The jobs market is still fragile, with more than a million people still on furlough.
“An abrupt and premature end to the furlough scheme will needlessly cost jobs and harm our economic recovery.
“Instead of pulling the rug out from under the feet of businesses and workers, the chancellor must extend the furlough scheme for as long as is needed to protect jobs and livelihoods.”
Captain Martin Chalk, Acting General Secretary of BALPA said: “The UK aviation sector is the only industry to remain effectively in a lockdown.
“It employs about one million workers directly and ONS statistics show that 57% of remaining employees in air transport companies remain on furlough.
“The scale of jobs at risk of redundancy when the furlough scheme ends is self-evident, yet the footprint of aviation must not be missed – one in four constituencies has over 1,000 people employed directly by aviation companies.
“If the Chancellor chooses not to extend furlough, the effects will be felt by workers, communities and businesses right across the country.”
Diana Holland, Unite Assistant General Secretary, said: “Aviation is crucial to the UK’s economic recovery. It needs furlough support to continue while Covid restrictions apply.
“Airports and aviation support thousands of jobs. Without support all are at high risk.”
– The full report Beyond furlough: why the UK needs a permanent short-time work scheme is here:
Scotland’s pubs and bars face unprecedented challenges with fears up to 12.5k jobs could be lost
The Scottish Licensed Trade Association has released a snapshot survey of the challenges facing Scotland’s pubs and bars, sponsored by KPMG UK. The survey contains key insights into the significant impacts of the COVID crisis on Scotland’s pubs and bars.
The survey which represents over 10% of Scotland’s On-trade premises, highlights that 45% of business owners do not expect a return to any sort of normal trading until a vaccine is found.
The survey also revealed that up to 25% of the 50,000 jobs in the sector could be lost and coupled with the introduction of reduced opening hours for many businesses and a subsequent reduction in working hours for staff, all jobs in the sector are effectively under threat.
Colin Wilkinson, Managing Director of the SLTA, said: “Our snapshot survey covers all types of licensed premises and is an indicator of the key issues facing the wide range of small to large businesses which trade within the wider hospitality sector.
“Our survey is based upon quantitative research from over 600 outlets covering the length and breadth of the country and is supported by major food and drink chains, independent pubs, bars and hotels in Scotland’s hospitality sector.
“The impact of COVID has been more severe for Scotland’s pubs and bars than virtually any other sector, and we now face the stark reality that up to 12,500 jobs could be lost as nearly 90% of premises report that their revenue is down versus last year, with 38% reporting revenue decreases of over 50%.
“Our own survey reinforces a recent survey by the University of Edinburgh on behalf of the tourism industry, which shows the devastating impact on employment in pubs, bars and the wider hospitality sector.
He went on: “Our sector has worked very hard to prepare for reopening and to ensure customers enjoy a safe environment. The average pub or bar spent £2,500 on training and social distancing measures, and this equates to a £15m investment across the entire sector.
“Also, many pubs and bars have adapted by making increased use of digital technology and offering restaurant quality food and cocktails for home delivery. However, with many people working from home, and local restrictions, one of Scotland’s major employment sectors faces unparalleled difficulties and the current business climate is leading to a real threat of permanent business closures and job losses.’’
The sector welcomed the support from both the UK and Scottish Governments, but notably support from Banks and UK Government had a higher rating than Scottish or Local Government.
Alistair McAlinden, head of hospitality and leisure for KPMG in Scotland, said: “It’s incredibly concerning, but not entirely surprising, to hear that so many licensed trade operators across Scotland are worried about largescale job losses and possible business failures over the next twelve months. The industry is facing a battle for survival and there will inevitably be some casualties.
“KPMG’s Economic Outlook research gives some cause for cautious optimism, forecasting that Scotland’s economy should regain lost ground in 2021, provided a vaccine programme is successful and rolled out quickly. But, for many pubs and bars, the crisis is happening right now and time is running out.
“The sector has worked tirelessly to reopen and rebuild consumer confidence. A collaborative effort and increased support from political leaders will be essential to ensure the industry survives an incredibly challenging few months ahead.
“As part of this, KPMG’s multidisciplinary team are already supporting a number of licensed trade operators as they seek to navigate their way through these financial headwinds.”
Colin Wilkinson concluded: “The SLTA, is currently celebrating our 140thanniversary, and has been the voice of the independent licensed On-trade in Scotland since 1880. Right now, our industry is fighting for its survival with many businesses on the precipice of business failure.
“The sector is a critical part of Scotland’s tourism and food and drink economies and we urge UK, Scottish and Local Governments to provide continuing support for our pubs and bars and protect the jobs that they provide directly, and the associated jobs in the wholesaling, brewing/distilling and food producing sectors.”
Key Findings
63% of businesses are employing less people now than in January (a traditional quiet month), and it is forecast this will increase to 70% less employees by Christmas.
45% of businesses do not expect a return to normal trading until a COVID vaccine is found.
85% of outlets are seeing a downturn in footfall and 89% in revenue.
38% have seen revenue drop by over 50% versus same period last year.
There is evidence that venues in rural and tourist locations are faring slightly better than in urban areas with 77% showing a revenue decline versus 89% nationally.
Retailers have spent significant sums on preparing to meet social distancing standards, with an average investment of £2,500 per outlet, which equates to £15m across Scotland’s pubs and bars.
There are major implications for employment.
Most respondents felt positive about government support provided, but notably support from Banks and UK Government had a higher rating than Scottish or Local Government.
The Eat Out to Help Out scheme was well received amongst those serving food with an enthusiasm to extend.
Retailers have adapted to new ways of working and serving their customers with 43% increasing their use of digital technology and 35% offering food for takeaway.
Marks and Spencer announces 7000 job cuts over next three months:
We are today announcing important proposals to further streamline the business both at stores and management level.
As previously outlined Clothing & Home trading in the stores remains well below last year, with online and home delivery strong. It is clear that there has been a material shift in trade and whilst it is too early to predict with precision where a new post Covid sales mix will settle, we must act now to reflect this change.
We have also learnt that we can work more flexibly and productively with more colleagues multi-tasking and transitioning between Food and Clothing & Home. The deployment of our leading store technology package developed in partnership with Microsoft has also enabled us to reduce layers of management and overheads in the support office.
As a result we are today embarking on a multi-level consultation programme which we anticipate will result in a reduction of c. 7,000 roles over the next 3 months. These will include departures in our central support centre, in regional management, and in our UK stores, reflecting the fact that the change has been felt throughout the business.
We expect a significant proportion will be through voluntary departures and early retirement. In line with our longstanding value of treating our people well, we will now begin an extensive programme of communication with colleagues.
Concurrently we expect to create a number of new jobs as we invest in online fulfilment and the new ambient food warehouse and reshape our store portfolio over the course of the year.
The cost of the programme including redundancies will be reflected in a significant adjusting item to be included in the group’s half-year results. The streamlining programme is an important step in delivering on our cost savings programme and ensuring we emerge from the crisis with a lower cost base and a stronger more resilient business.
Chief Executive Steve Rowe commented: “In May we outlined our plans to learn from the crisis, accelerate our transformation and deliver a stronger, more agile business in a world in which some customer habits were changed forever.
“Three months on and our Never the Same Again programme is progressing; albeit the outlook is uncertain and we remain cautious. As part of our Never The Same Again programme to embed the positive changes in ways of working through the crisis, we are today announcing proposals to further streamline store operations and management structures.
“These proposals are an important step in becoming a leaner, faster business set up to serve changing customer needs and we are committed to supporting colleagues through this time.”
A restructuring process at Edinburgh Airport due to the impact of the Covid-19 pandemic on the aviation industry will see around a third of its workforce leave the business.
Following a lengthy and detailed consultation process with staff and unions, the airport has made the regrettable decision as it prepares for a prolonged recovery.
The airport directly employs 750 people and the redundancy process will begin today, covering all areas including frontline staff, management and support functions. The restructuring includes compulsory and voluntary redundancies across the business.
The airport consulted with staff and unions and its proposals on terms of redundancy were supported by more than 90% of people who took part in the ballot.
Colleagues who will unfortunately be made redundant will begin to receive letters as of 1 August and will leave the business on 31 October
Gordon Dewar, Chief Executive of Edinburgh Airport said: “This is a bitterly sad day for the airport and for those colleagues who are losing their jobs through no fault of their own but due to the impact of this dreadful pandemic.
“We have worked with unions and staff over the past four months to protect as many jobs as possible, but unfortunately we have to confirm this regrettable news as the business prepares for whatever comes next.
“Last year we welcomed a record 14.7 million people through our doors. This year we will be lucky to see a third of that and next year won’t be anywhere near where we have previously estimated so the business has to right size to be in a position to survive and recover when it can.”
The airport has used the UK Government’s Job Retention Scheme over the past few months as it has carefully considered the best approach to its recovery. It has helped to retain jobs, but the upcoming closure of the scheme and uncertain recovery of aviation means jobs will still be lost.
Gordon Dewar added: “The furlough scheme has undoubtedly helped us to retain jobs and we are grateful for the UK Government’s support, as well as that of the Scottish Government through things like rates relief.
“Despite this, we continued to burn around £3.5 million a month as passenger numbers dropped dramatically and airlines drastically scaled back operations. It will be a very long road to recovery, and we cannot successfully make that journey while we are set up as a 15 million passenger airport.
“Aviation was one of the industries to be hit first and unfortunately will be one of the last to fully recover, so job losses have been unavoidable. The situation has been exacerbated by the introduction of an ill-thought out and unworkable blanket quarantine policy which has massively impacted on passenger numbers.
“Aviation jobs rely on passengers and flights. That has been lost in this argument and despite us working with unions to make the case for directed support, we are still waiting to find out what will be done to preserve these jobs which are crucial to any industry and economic recovery.
“Throughout the consultation we have striven to be fair, compassionate and seek an outcome that protects as many people as possible.
“We bitterly regret this necessity and all of our talented colleagues departing the business leave with our very best wishes. They are an incredibly talented workforce who have served Edinburgh Airport fantastically well and we will do what we can to help them find other employment. We are sorry to see them go.”
Lothians MSP Miles Briggs commented: “Edinburgh Airport have had no choice but to make these redundancies, because of the impact of Covid-19 on the aviation industry, and my thoughts are with employees who will be made redundant through no fault of their own.
“These job redundancies reinforce the importance of investing in the South East of Scotland to grow the economy and create more job opportunities.
“Employees who are being made redundant must be fully supported to find new roles and develop new skills for career changes until the aviation industry recovers.”
