Scotland’s retail and hospitality industries are set to benefit from a sizable jobs boost, thanks to St James Quarter and its FUSE initiative.
As the retail and hospitality industries look to recover from the impact of the COVID-19 Pandemic, more than 450 new jobs will be recruited for initially at the development – with the capital city destination also planning to sustain a total of 3,000 new roles as it continues to grow.
Launched by the team at St James Quarter and working in partnership with a number of organisations across the city, FUSE is a new initiative providing a high-quality recruitment service specialising in retail and hospitality for employers both within St James Quarter and the wider Edinburgh area.
FUSE is recruiting roles for a variety of different levels, ranging from retail and restaurant management to security, customer service and cleaning staff – for brands such as Bonnie & Wild, Miele, Croma Vigilant and ABM. Further to driving recruitment, FUSE will continue to support those employed by providing further training, accredited qualifications, and ongoing networking opportunities.
Rochelle Burgess at St James Quarter said:“The upcoming St James Quarter opening is a catalyst for a new era in Edinburgh providing jobs, building careers, and creating opportunities for people to develop and grow.
“The team at St James Quarter is passionate about doing our part to support and bolster the local community and we’re proud to be able to bring so many exciting career opportunities to Scotland – especially during what has been such a tough time for the people at the heart of the retail and hospitality industries.”
Calum Nicol, FUSE Manager, added: “At FUSE, we’re committed to providing a leading service for both employers and employees – helping to match recruits with the needs of employers.
“Our diverse and experienced team allows us to stay at the forefront of recruitment needs, with our in-depth knowledge of all sectors placing the most suitable candidates in the most suitable positions.
“After such a difficult period for these industries, FUSE hopes to be a beacon of hope for those seeking employment and career opportunities at such a challenging time.”
St James Quarter is set to open the first phase of its retail, dining and leisure elements in Spring this year.
More than 150,000 jobseekers across Great Britain will benefit from new employment support, helping them build their interview skills, find local vacancies and quickly get back into work.
New Job Finding Support service launched to benefit 160,000 people over the next year
Support ranges from job searches and interview practice to advice on how to switch careers
Service to run in parallel to existing support available in jobcentres and by work coaches, as part of UK Government’s Plan for Jobs
A new team of 325 Job Search Advisers are now available online or over the phone, to support those recently unemployed who already have the skills and experience needed to move into a new career, but might not be sure where to start.
Over the next 12 months, an expected 160,000 jobseekers will receive digital support and advice, as part of a new Job Finding Support (JFS) service in a further boost to the Government’s Plan for Jobs.
The ‘quick-fire support’, which takes place across four one-to-one sessions and aims to be completed in a matter of weeks, offers mock interviews, help to identify transferable skills and advice on how to switch industries, as well as online group sessions to improve job search techniques.
Secretary of State for Work and Pensions Therese Coffey (above) said: “Job Finding Support will help jobseekers brush up on interview skills and advice, giving them a helping hand to move back into work quickly.
“Our Plan for Jobs is helping us build back better and fairer, getting job support to people who need it right across Britain and levelling up opportunity.”
The service is completely voluntary to all jobseekers who have been unemployed for less than 13 weeks and are claiming benefits. Participants are referred to the scheme through their Work Coach.
As the Department for Work and Pensions drives forward the Plan for Jobs, it has supported over 40,000 people to retrain and upskill on the Sector-based Work Academy Programme; and recruited 8,500 new Work Coaches to spearhead efforts to get Britain working again.
Chief Executive of ERSA, Elizabeth Taylor, said: “The government’s Plan for Jobs package of labour market initiatives is helping people to provide for their families throughout the pandemic, and Job Finding Support is another important step in helping jobseekers in these difficult times.”
Job Finding Support will run in parallel to existing support that is available in jobcentres, and will complement the role of Work Coaches who provide more intensive support for jobseekers, including anyone facing specific difficulties returning to work.
This service will also free up frontline staff as they continue to help people access the financial support they need through the welfare safety net.
All round support is key to digital skills-powered recovery, says new report
Equipping people with soft skills and tackling motivational barriers can switch them onto learning new digital skills, according to a new report.
The findings come in ‘Shocks, knocks and skill building blocks’, from leading digital inclusion charity Good Things Foundation, following a one-year programme of work in partnership with Accenture and Nesta.
It highlights the need for help for people to learn soft skills, such as increased confidence, better decision-making and resilience to setbacks, to lay the foundations for workers to embrace digital skills and thrive.
The impact of COVID-19 on the jobs market is visible – and with unemployment forecast to hit 2.6 million by the middle of 2021 and digital skills more important and in-demand than ever, the findings offer a proven route to employability success.
The Future Proof: Skills for Work programme was designed to build work-related digital skills for unemployed or underemployed people, helping them achieve sustained employability outcomes.
With the global pandemic shaking the employment landscape to its core, the jobs market is a very competitive space where workers are required to be both digitally skilled and adaptable. Yet whilst 82% of roles require digital skills, 52% of working age adults do not yet have them.
Working with 13 community partners and helping over 900 people, the programme focused on understanding the barriers faced by learners – and how these can be overcome to help close the digital skills gap.
As a result of the programme, which was delivered remotely in communities after lockdown hit the UK last March, 70% of participants believe their digital skills have improved while 68% believe they are better prepared for employment.
The greatest change in attitude was around resilience in the face of challenges, with 27% of learners experiencing a positive change.
The project also saw a larger number of employed and higher-educated workers engaging with Good Things Foundation’s community partners and the Future Proof programme.
The new report also:
Highlights the crucial role of hyperlocal community organisations, arguing they are best placed to help people build confidence and learn digital skills simultaneously.
Calls for a move away from a tick-list approach to skills – including digital – to one that instead accommodates natural changes and fluctuations.
Helen Milner, Chief Executive of Good Things Foundation, said: “Working with Accenture, Nesta and our community partners, Future Proof has been ahead of the curve in terms of predicting new audience demand, skills and motivations and helping people gain digital skills alongside greater confidence and broader skills.
“Remote working due to COVID-19 has changed working patterns permanently. This makes upskilling the workforce even more vital. With the UK in the grips of another national lockdown and nine million adults unable to use the internet without help, the Government needs to demonstrate a strong commitment to fix the digital divide, to support economic recovery.”
Camilla Drejer, Director of UK & Ireland Corporate Citizenship at Accenture said: “At Accenture, we recognise how critical it is to support people in building new skills. This programme is not just helping people learn the digital skills needed today but also motivating participants to commit to life-long learning and develop a confidence about the opportunities that the digital economy brings.
“Through the Future Proof programme, we are pleased to have been able to help participants understand this shift, plan for the future and take charge of their careers. We believe that it is our duty as a responsible business to focus on the value we can create and this programme is an important aspect of that.”
Impact of restrictions and lockdowns has fuelled decreased motivation, confidence and morale among jobseekers
Average jobseeker in Scotland rejected from 15 different roles during pandemic
The nationwide survey was commissioned to launch BT Stand Out Skills, providing jobseekers of all ages with free tools and resources to help them build confidence and stand out in their job search: BT.com/StandOutSkills
With all parts of the UK starting 2021 in lockdown, a new study has revealed that an overwhelming majority of jobseekers have been negatively affected by their search for work over the past year, with more than three quarters (76%) surveyed in Scotland attributing a downturn in their mental wellbeing to their job search.
The research, commissioned by BT to launch Stand Out Skills, also showed that the average jobseeker in Scotland has unsuccessfully applied for 15 different roles over the past 12 months.
When asked how rejections and the job search had affected them specifically, 42 per cent of jobseekers in Scotland responded that they had experienced decreased motivation, while 41% highlighted lower self-esteem and morale and a further 43% a reduction in self-confidence.
BT’s research also highlighted how this lack of confidence persists throughout the various stages of the job search. Just 25 per cent of those surveyed in Scotland are confident that their CV and covering letter will stand out when compared to fellow candidates, while even fewer (24%) believe in their ability to impress and leave a lasting impression in an interview.
This has led to jobseekers hiding details of their job search from their closest friends and family, with 39 per cent keeping job applications secret in case they are rejected and a further 46% being concerned about what family or friends will think of the rejection.
Added to the difficulties jobseekers already face, the research also went on to show that nearly half (41%) of those surveyed in Scotland admitted to struggling to find resources which could help them in their job search, including how to improve their CV and job interview technique.
As part of BT Skills for Tomorrow, which aims to help 10 million people in the UK make the most of life in the digital world, BT has launched Stand Out Skills. This initiative provides jobseekers of all ages with free and unmissable tips, resources and advice to support them in building their confidence and help them stand out in the job search.
BT has teamed up with experts and celebrities including Scottish comedian Iain Stirling, TV presenter Anita Rani and Drag Queen Divina De Campo to release free resources and advice across different stages of the job search – from where to start and showing your best self to standing out when applying and in interviews.
Hannah Cornick, Head of Digital Impact and Sustainability at BT, said: “The global pandemic has had far-reaching consequences for the job market, and it’s only natural that jobseekers’ confidence will have been affected.
“BT remains more committed than ever to its Skills for Tomorrow programme, and to ensuring that people have the skills they need to flourish in an increasingly digital world. This is why we have launched Stand Out Skills, to help those looking for work build their confidence by providing them with the necessary tools and resources they need to get ahead of the competition and stand out in their job search.”
BT Skills for Tomorrow is designed to help everyone – from school children and teachers, parents and families, businesses and jobseekers, to those lacking basic digital skills. Working in partnership with a range of the UK’s leading digital skills, enterprise and community organisations, BT has created and collated some of the best advice, information and support, in one easy to navigate place.
Comedian and Love Island narrator, Iain Stirling (pictured top) said:“As a stand-up comedian, I know it’s important to grab people’s attention right from the start, and the samegoes for your job application.
“Having an employer sit up and take note of your CV, cover letter and LinkedIn profile is the first step towards getting ahead of your competition. Words have the power to leave a lasting impact on an audience, so it’s important that you choose the right ones.
“That’s why I’m delighted to be involved in the BT Stand Out Skills campaign, to help people nail those job applications and present themselves in the best way on LinkedIn so that they can land their dream job.”
More on BT Skills for Tomorrow and Stand Out Skills can be found here:
· ‘The Chips Are Down: Save Our Casinos, Save Our Jobs’ campaign is urging First Minister, Nicola Sturgeon to lift restrictions and allow casino venues to reopen in Level 2
· More than 700 people employed by the casino industry face job uncertainty whilst venues stay closed
After weeks of closure and with hundreds of jobs at risk, the casino industry in Scotland has joined forces to urge the Scottish Government to change its current tiering restrictions which are forcing venues to remain closed.
11 casino venues in Scotland which support more than 700 jobs in Aberdeen, Dundee Edinburgh and Glasgow, have launched a petition encouraging its customers to write to the First Minister, Nicola Sturgeon, to enable the recovery of the sector by allowing casinos to open in Level 2.
Led by Scotland’s largest casino operator, Grosvenor Casinos and with the support of Genting Casinos, Caesars Entertainment and trade association Betting and Gaming Council, ‘The Chips Are Down: Save Our Casinos, Save Our Jobs’ campaign points to the belief that the casino industry is being unfairly singled out.
Whilst pubs, bars, restaurants and cinemas are able to continue to trade in Level 2 or below, the shutters came down on casino venues when the Scotland Strategic Framework was announced, putting jobs and livelihoods at risk.
Casinos are stressing the urgent need for the Scottish Government to lift the current restrictions imposed and allow venues to open in Level 2, and are asking the government to better understand the evidence which clearly points to casinos as ultra-safe venues.
Jonathon Swaine, Managing Director of Grosvenor Casinos, said: “We cannot stress enough how damaging it is that casinos across Scotland are being imposed with these arbitrary restrictions.
“As an industry we provide ultra-safe venues for colleagues and customers to visit. There is not a shred of scientific evidence which supports the decision to keep casinos closed in Level 2 while other hospitality venues are able to stay open.
“If Scottish casinos are forced to remain closed it will have a devastating impact on those customers who enjoy their local venues as a community hub, on team members who will lose their jobs, on the local suppliers it serves, on the charities that they are proud to support, as well as on the wider economy which will lose millions of pounds in tax receipts.”
Out of 30,000 unique admissions through the doors since reopening in August, there has been just one recorded case of coronavirus transmission within any casino in Scotland, with 87% of casino customers saying that they feel safe in a casino compared to other entertainment and hospitality venues.*
Casino businesses have invested millions of pounds to ensure venues are safe for its colleagues and customers to play, installing PPE such as plexiglass screens between gaming tables, ID scanning technology upon entry, hand sanitiser stations and social distancing signage throughout venues.
The casino industry in Scotland contributed £30m in tax a year to the UK economy, but the continued and unjustified closure of casinos in Scotland is threatening to shut their doors for good.
Michael Dugher, Chief Executive of the Betting and Gaming Council, said: “Casinos in Scotland safely re-opened in August, with excellent anti-Covid measures in place, and there is absolutely no evidence that they contribute to the spread of virus.
“Closing them makes no sense, especially when other parts of the hospitality sector are being allowed to stay open. That’s why the industry is rallying together to urge the Scottish Government to think again, remove casinos from Level 2 and let them get back to business.”
To add your support to ‘The Chips Are Down: Save Our Casinos, Save Our Jobs’ campaign petition and for more information www.savecasinossavejobs.com
Sainsbury’s is to cut 3,500 jobs, mainly from it’s Argos chain, it was announced this morning.
The retailer plans to close more than 400 standalone Argos stores by March 2024, although it says it will open 150 more Argos outlets in Sainsbury’s stores. Jobs will also go in the supermarkets, however, with the closure of delicatessen and fresh fish and meat counters.
Simon Roberts, Chief Executive of J Sainsbury plc said:“As we go into lockdown in England for the second time this year and restrictions are in place across the UK, we know our customers and colleagues are feeling anxious and we will do all we can to support them.
“Our colleagues have done an exceptional job going above and beyond for our customers every day which is why we are giving our frontline colleagues a second 10 per cent thank you payment.
“Above all else today, I want to express my heartfelt thanks to every one of my colleagues in our stores, in our depots, and across our store support centres for all your hard work and for your outstanding team effort.
“We also want to support our communities and those in need and are creating a £5 million community fund for local charities and good causes, in addition to the £7 million we donated to Fareshare and Comic Relief earlier this year. We want to do our bit to ensure that no one goes hungry at Christmas and to support those most in need.
“COVID-19 has accelerated a number of shifts in our industry. Investments over recent years in digital and technology have laid the foundations for us to flex and adapt quickly as customers needed to shop differently. Around 19 per cent of our sales were digital this time last year and nearly 40 per cent of our sales are digital today.
“While we are working hard to help feed the nation through the pandemic, we have also spent time thinking about how we deliver for our customers and our shareholders over the longer term.
“We will put food back at the heart of Sainsbury’s. We are already working to make this happen – we have lowered prices on over 1,500 every day grocery products over the past few months and we will do more of this, focusing on the staple products that our customers buy every day.
“We know that customers are feeling the pinch and we want them to feel confident they will get always get great value, quality and service from Sainsbury’s. We will focus on accelerating product innovation and will bring new and exclusive products to our customers much more often.
“To support our ambition in food, we are accelerating our ambition to structurally reduce our cost base right across the business so we can invest faster back into our core food offer.
“Our other brands – Argos, Habitat, Tu, Nectar and Sainsbury’s Bank – must deliver for their customers and for our shareholders in their own right.
“Argos sales have been strong over the past six months and we have gained almost two million new customers as people have re-connected with Argos. Over the next three years we will make Argos a simpler, more efficient and more profitable business while still offering customers great convenience and value and improving availability.
“We will also make Habitat more widely available in Sainsbury’s and Argos, giving customers access to stylish home and furniture products at more affordable prices.
“We are talking to colleagues today about where the changes we are announcing in Argos standalone stores and food counters impact their roles. We will work really hard to find alternative roles for as many of these colleagues as possible and expect to be able to offer alternative roles for the majority of impacted colleagues.
“Given the unprecedented circumstances of this year and the challenges facing our colleagues, including the changes we are announcing today, I have informed the Board that if a bonus is payable, I will waive any bonus entitlement for this financial year.
“We are raising our ambitions. By delivering improvements in value and quality and simplifying this business, we will do a better job for our customers and deliver an improved financial performance and stronger shareholder returns.
“Right here and now I and all the team are focused on supporting and delivering for our customers in the days and weeks ahead.”
Unite the union has called on Sainsbury’s to redeploy its 500 members whose jobs on deli, fish and meat counters are under threat, following today’s announcement by the supermarket giant that it is cutting 3,500 jobs.
Unite said that it was ‘deeply disappointed’ by the news affecting its members working on these counters which have been closed since the first lockdown in March and called for urgent talks to explore redeployment opportunities within Sainsbury’s supermarkets.
It is understood that the redundancy notices for the counter staff will be issued in March next year and come into effect in May 2021.
Unite national officer for the food industry Bev Clarkson said: “This is very disappointing news for our 500 members working on the deli, fish and meat counters.
“We are seeking urgent talks with the management to explore deployment opportunities within Sainsbury’s, given the supermarket’s sales have risen since the first lockdown in March.
“Hopefully, the supermarket can reopen some of these counters, closed since March, once the Covid-19 restrictions are eased and a vaccine comes on stream.
“Sainsbury’s needs to engage more constructively with Unite going forward as this news came ‘out of the blue’ without the detailed consultations we would expect from such an established and well-known company.
“This is very grim news for our members and their families in the run-up to Christmas, and we will be giving them maximum support during this worrying and uncertain time.”
More than 200,000 jobs are already contributing to a cleaner, more sustainable Scotland, while thousands more roles could be created through the green recovery post-Covid19, experts have found.
A landmark report from Zero Waste Scotland and Circle Economy published today (Wednesday 28 October, 2020) shows the number of existing Scottish jobs operating within the circular economy, which keeps goods and materials in a ‘loop’ of use to maximise their value and minimise waste and the carbon emissions that causes.
It comes as Scotland’s decision-makers look to grow new ‘green’ jobs as they plan the country’s economic recovery from the coronavirus pandemic.
Scotland’s circular economy expert organisation, Zero Waste Scotland, helps businesses and consumers reduce waste and emissions to combat climate change. It produced the report – the first national assessment of ‘circular’ jobs and of future requirements for roles and skills in three priority areas in Scotland – working with fellow experts at Circle Economy in the Netherlands.
The circular economy is about making things last: through smarter design, and reusing, repairing and remanufacturing to create new items from old – all to keep products and materials within the economy for as long as possible.
It promises to maximise value from the goods we already have in circulation while relieving pressure on finite natural materials, like oil and precious metals. These resources are in high demand to create new products, yet those products are often thrown away by consumers after only a short amount of time.
Findings from the report, entitledThe Future of Work: Baseline Employment Analysis and Skills Pathways for the Circular Economy, show Scotland is in a strong position to benefit from the circular economy, with 8.1% of jobs already linked to the circular economy. That’s on a par with other countries where similar assessments have been conducted, like the Netherlands and Belgium.
The research also identifies a wide-ranging mix of new circular roles and skills needed to help Scotland Build Back Better by forging a truly national circular economy. It sets out a vision of the future of work in three priority areas – construction, the bioeconomy and capital projects, such as decommissioning energy infrastructure from oil rigs to wind turbines.
Iain Gulland, Chief Executive of Zero Waste Scotland, said:“Scotland has long been recognised as a leading nation on the circular economy so it’s heartening to see that so many jobs are already operating within circular business models, and we know there is scope for many more.
“As a nation we are preparing to Build Back Better following the coronavirus pandemic – while we’re just 12 months away from some of the most important climate negotiations of recent times in COP26, being held in Glasgow next year¹. What better time to make sure we stimulate growth while respecting the limits of our natural environment.
“The circular economy offers a way forward that can help Covid-hit businesses futureproof their operations, making them less vulnerable to future supply chain issues, while also generating opportunities for inward investment and new ‘green’ jobs.”
Scotland’s Environment Secretary, Roseanna Cunningham, said:“In these uncertain times, it’s more important than ever that we design a better future and see things put back together differently.
“It is vital that we draw on our experience of coronavirus – the things we’ve learned about how we work, travel and live – and apply this to our approach to Scotland’s green recovery, and to achieving net-zero.
“A thriving circular economy will play a critical role in ending Scotland’s contribution to climate change, and we must all – government, businesses, industry and individuals – be a part of driving this – and to ensuring our journey to net-zero is fair for everyone.
“I welcome the Future of Work report, which shows we are well on our way to evolving jobs that help drive our net-zero ambitions while ensuring we deliver a fairer economy in which everyone in Scotland can thrive.”
The study has been launched alongside a Circular Jobs Monitor tool from partner Circle Economy. This online tool enables users to see how many of a country’s existing jobs are associated with the circular economy, and how it compares to other nations.
Scotland’s figure includes directly circular jobs – such as those in the repair sector, design-related fields like architecture, or renting and leasing activities – as well as indirectly circular jobs, such as teachers, which provide services to primary circular activities.
The study shows that most circular jobs in Scotland are concentrated in southwestern and eastern regions, together accounting for more than 75% of all circular Scottish jobs – although in relative terms, all regions show a similar circular share of employment of between 7% and 9.8%.
Further information about regional circular jobs can be found on pages 18 to 23 of the report.
Mr Gulland continued: “For Scotland to maximise the benefits of a more sustainable economy we need to work towards all jobs being ‘circular’. It’s important to ensure we overcome Covid-19 and end our nation’s contribution to the climate crisis by 2045.
“Our landmark report identifies how we can do that, highlighting gaps which we need to fill and exciting new job opportunities in three key sectors. The circular economy is an opportunity for all parts of Scotland, urban and rural, to benefit from forward-looking jobs that are less susceptible to market pressures and help preserve our environment at the same time.”
The Future of Work: Baseline Employment Analysis and Skills Pathways for the Circular Economy is available on the Zero Waste Scotland website.
– Roles being advertised focus on picking and packing Morrisons on Amazon orders –
Morrisons is creating over 1,000 permanent jobs to fulfil orders for its services on Amazon.co.uk and Amazon Prime Now.
Morrisons is recruiting the colleagues to help pick and pack customer orders from over 50 stores, covering most major cities and many towns.
Customers are looking for different ways to access grocery home deliveries and Morrisons on Amazon (an Amazon.co.uk service) and the Morrisons Store on Amazon Prime Now (accessible via the Prime Now site and app) provide Prime members with a way of getting free-of-charge same-day grocery delivery.
Orders are placed on Amazon, before being picked in store by Morrisons employees and packed in a dedicated area. From there, the shopping is collected by Amazon Flex Delivery Partners and delivered to the customer within a two-hour delivery window on the same day.
The ‘Customer Assistant – Pick and Pack’ roles are available in over 50 stores across the country. Successful candidates will work as part of a Delivery team in stores, ensuring that orders are picked and packed correctly and customer service standards are maintained.
Hannah Horsfall, Head of Amazon at Morrisons,said: “At Morrisons, we’re doing everything we can to ensure everyone can order our great value food and have it delivered to their doorstep.
“We’re looking for team players, with good customer service skills that can play their full part in helping to feed the nation.”
All jobs are advertised on the Morrisons Jobs website: https://www.morrisons.jobs/ – search for pick and pack.
Chancellor Rishi Sunak has outlined his Winter Economy Plan at Westminster
Mr Speaker, Thank you for granting me permission to make this Statement to the House today.
Earlier this week the Prime Minister set out the next stage of the government’s health response to Coronavirus.
Today I want to explain the next phase of our planned economic response.
The House will be reassured to know I have been developing plans to protect jobs and the economy over the winter period.
Plans that seek to strike the finely-judged balance between managing the virus and protecting the jobs and livelihoods of millions. Mr Speaker,
I know people are anxious, and afraid, and exhausted, at the prospect of further restrictions on our economic and social freedoms.
I share those feelings, but there are reasons to be cautiously optimistic.
We are in a fundamentally different position than we were in March.
And we now know much more about this virus.
Public awareness of the risks, and how to mitigate them, is far greater.
And we have met our promise to give the NHS whatever it needs, with significant new funding for NHS capacity, for PPE, and, I can inform the House today, we have now provided over £12 billion for test and trace.
In economic terms, while our output remains well below where it was in February, we have seen three consecutive months of growth.
And millions of people have moved off the furlough and back to work.
But the resurgence of the virus, and the measures we need to take in response, pose a threat to this fragile economic recovery.
So our task now is to move to the next stage of our economic plan, nurturing the recovery by protecting jobs through the difficult winter months.
Mr Speaker, The underlying rationale for the next phase of economic support must be different to what came before.
The primary goal of our economic policy remains unchanged: to support people’s jobs.
But the way we achieve that must evolve.
Back in March, we hoped we were facing a temporary period of disruption.
In response, we provided one of the most generous and comprehensive economic plans anywhere in the world with £190 billion of support for people, businesses and public services, as we protected our economic capacity.
It is now clear, as the Prime Minister and our scientific advisers have said, for at least the next six months the virus and restrictions are going to be a fact of our lives.
Our economy is now likely to undergo a more permanent adjustment.
The sources of our economic growth and the kinds of jobs we create, will adapt and evolve to the new normal. And our plan needs to adapt and evolve in response.
Above all, we need to face up to the trade-offs and hard choices Coronavirus presents. And, Mr Speaker, there has been no harder choice than the decision to end the furlough scheme.
The furlough was the right policy at the time we introduced it.
It provided immediate, short-term protection for millions of jobs through a period of acute crisis.
But as the economy reopens it is fundamentally wrong to hold people in jobs that only exist inside the furlough.
We need to create new opportunities and allow the economy to move forward and that means supporting people to be in viable jobs which provide genuine security.
As I’ve said throughout this crisis, I cannot save every business. I cannot save every job. No Chancellor could.
But what we can and must do is deal with the real problems businesses and employees are facing now.
In March, the problem was that we ordered businesses to close.
In response, we paid people to stay at home and not work.
Today, the problem is different.
Many businesses are operating safely and viably, but they now face uncertainty and reduced demand over the winter months.
What those businesses need is support to bring people back to work and protect as many viable jobs as we can.
To do that, I am announcing today the new Jobs Support Scheme.
The government will directly support the wages of people in work giving businesses who face depressed demand the option of keeping employees in a job on shorter hours rather than making them redundant.
The Jobs Support Scheme is built on three principles.
First, it will support viable jobs.
To make sure of that, employees must work at least a third of their normal hours and be paid for that work, as normal, by their employer.
The government, together with employers, will then increase those people’s wages covering two-thirds of the pay they have lost by reducing their working hours.
And the employee will keep their job.
Second, we will target support at firms who need it the most.
All small and medium sized businesses are eligible.
But larger businesses, only when their turnover has fallen through the crisis.
Third, it will be open to employers across the United Kingdom, even if they have not previously used the furlough scheme.
The scheme will run for six months starting in November.
And employers retaining furloughed staff on shorter hours can claim both the Jobs Support Scheme and the Jobs Retention Bonus.
Mr Speaker,
Throughout this crisis, we have sought parity between employees and the self-employed providing more than £13 billion of support to over 2.6 million self-employed small businesses.
So I am extending the existing self-employed grant on similar terms and conditions as the new Jobs Support Scheme …
Mr Speaker,
These are radical interventions in the UK labour market; policies we have never tried in this country before.
Together with the Jobs Retention Bonus, the Kickstart scheme for young people, tens of billions of pounds of job creation schemes, new investment in training and apprenticeships, we are protecting millions of jobs and businesses.
Mr Speaker, If we want to protect jobs this winter, the second major challenge is helping businesses with cash flow.
Over the last six months, we’ve supported business with tens of billions of pounds of tax deferrals and generous, government-backed loans.
Those policies have been a lifeline.
But right now, businesses need every extra pound to protect jobs rather than repaying loans and tax deferrals.
So I’m taking four further steps today to make that happen.
First, Bounce Back Loans have given over a million small businesses a £38 billion boost to survive this pandemic. To give those businesses more time and greater flexibility to repay their loans, we are introducing Pay As You Grow.
This means:
loans can now be extended from six to ten years – nearly halving the average monthly repayment
businesses who are struggling can now choose to make interest-only payments
and, anyone in real trouble can apply to suspend repayments altogether for up to six months
No business taking up Pay As You Grow will see their credit rating affected as a result.
Second, I am also changing the terms of our other loan schemes.
More than 60,000 Small and Medium sized businesses have now taken out Coronavirus Business Interruption Loans.
To help them, I plan to extend the government guarantee on these loans for up to ten years, making it easier for lenders to give people more time to repay.
I am also extending the deadline of all our loan schemes to the end of the year. And we are starting work on a new, successor loan programme, set to begin in January.
Third, I want to give businesses more time and flexibility over their deferred tax bills.
Nearly half a million businesses deferred more than £30 billion of VAT this year.
On current plans, those payments fall due in March.
Instead, I will allow businesses to spread that VAT bill over 11 smaller repayments, with no interest to pay.
And any of the millions of self-assessed income taxpayers who need extra help, can also now extend their outstanding tax bill over 12 months from next January.
The final step I’m taking today will support two of the most affected sectors: hospitality and tourism.
On current plans, their VAT rates will increase from 5% back to the standard rate of 20% on January the 13th.
So to support more than 150,000 businesses and help protect 2.4 million jobs through the winter I am announcing today that we are cancelling the planned increase and will keep the lower 5% VAT rate until March 31st next year.
Mr Speaker, Today’s measures mark an important evolution in our approach.
Our lives can no longer be put on hold.
Since May, we have taken steps to liberate our economy and society.
We did these things because life means more than simply existing.
We find meaning and hope through our friends and family, through our work, through our community.
People were not wrong for wanting that meaning, for striving towards normality, and nor was the government wrong to want this for them.
I said in the summer that we must endure and live with the uncertainty of the moment.
This means learning our new limits as we go.
Because the truth is the responsibility for defeating Coronavirus cannot be held by government alone.
It is a collective responsibility, shared by all.
Because the cost is paid by all.
We have so often spoken about this virus in terms of lives lost.
But the price our country is paying is wider than that.
The government has done much to mitigate the effects of the awful trade-offs between health, education and employment.
And as we think about the next few weeks and months, we need to bear all of those costs in mind.
As such, it would be dishonest to say there is now some risk-free solution.
Or that we can mandate behaviour to such an extent we lose any sense of personal responsibility.
What was true at the beginning of this crisis remains true now.
It’s on all of us.
And we must learn to live with it and live without fear.
NEW TUC REPORT identifies 600,000 existing public service vacancies and staff gaps that government could unlock quickly to cut jobless rate
The more people in work, the faster we will work our way out of recession, says TUC
A new TUC report has set out proposals for a public sector jobs drive to stave off mass unemployment and help the UK quickly recover from the Covid-19 recession.
The UK entered the Covid-19 crisis with our public services weakened by a decade of cuts. But public service workers gave their all to keep essential services going.
As we move out of the public health crisis, we are moving towards an economic crisis, with the Bank of England warning of mass unemployment with 2.5 million people out of work by the end of the year.
Creating decent jobs
The TUC’s report sets out a plan for public sector jobs to contribute to the fast employment growth the UK now needs.
It identifies the additional staff required across the public sector to fill vacancies, address shortfalls in provision and meet future need.
The union body is calling for government to urgently unlock the 600,000 jobs identified, including:
135,000 in health
220,000 in adult social care
110,000 in local government
80,000 in education
50,000 in civil service / public administration
Taken together with proposals published by the TUC in June to create 1.25 million jobs by fast-tracking green infrastructure investment, this plan could deliver a total of 1.85 million new jobs in the next two years.
Powering recovery
The TUC says that the government-led jobs drive would help support a stronger and faster private sector recovery too, with opportunities in supply chains and from the boost to spending power across the economy.
And it would help protect the Treasury from the revenue shortfall arising from the downside recovery scenario set out by the Office for Budget Responsibility (OBR).
Under the OBR’s downside scenario, peak unemployment would be two million higher than for the upside scenario. TUC analysis of OBR data finds that the Treasury would lose out on £520bn in revenue over the next five years on the downside scenario relative to the upside.
The TUC says that the government must invest now to put the UK on the upside path – by preventing mass unemployment.
Otherwise the nation will suffer the high costs of mass unemployment, weak revenue and slow growth for many years ahead.
TUC General Secretary Frances O’Grady said: “Working people carried the burden of the pandemic. They must not bear the brunt of the recession. The government must go all out to protect and create jobs and prevent the misery of mass unemployment.
“The more people we have in work, the faster the recovery will be. But ministers are sitting on their hands. It’s absurd to leave unfilled vacancies and unmet need in public services when unemployment is rising. Ministers should urgently provide the funding that will unlock existing public services vacancies and create good new jobs.
“Our plan to invest in good public services jobs will help workers avoid unemployment. It will strengthen the vital services that we all rely on. And it will get people out spending in local business and services. That’s how to drive the recovery forward.”
