TUC: Chancellor has a chance to prevent ‘devastation of mass employment’

As the Chancellor stands up to make his ‘summer statement’ today, families across the country will be facing up to the possibility of unemployment (writes the TUC’s KATE BELL): 

Yesterday, Pret-a-Manger announced it would be closing 30 shops, with the loss of 1,000 jobs. Last week, to take just one example, Airbus announced the loss of up to 1,700 jobs in the UK. British Airways are ploughing ahead with cuts which could lead to 12,000 job cuts. And the list is getting longer by the day. 

The Chancellor has a chance to prevent the devastation of mass unemployment leading to the situation this country saw in the 1980s – young people left on the scrap heap, lives ruined, and communities decimated. But he needs to act fast and decisively.

Here’s the TUC’s plan for decent jobs:

1. Introduce a real jobs guarantee – offering paid jobs for young people who face unemployment 

We’ve heard that the Chancellor may invest in apprenticeships, or traineeships – unpaid work placements with some training attached. It’s not clear yet whether these will be voluntary, or how the Chancellor expects people to live while they’re undertaking these. The TUC has always opposed mandatory unpaid work placements. And unpaid work experience is no substitute for a real jobs guarantee.

 We want the government to invest in supporting real jobs, paid at least the Real Living Wage, for young people facing the prospect of long-term unemployment. Government funding should support additional jobs in the public and private sector that support regional growth strategies, and provide real benefit, including helping to decarbonise the economy.  

That jobs guarantee must go alongside a rapid redundancy response service and investment in jobcentres. And we desperately need an increase in social security payments to stop those who lose their jobs spiralling into debt.  

2. Invest across the economy to create jobs 

We know the country needs an infrastructure upgrade to help drive productivity, and urgent action to tackle the climate crisis. And after a decade of austerity, our public services are desperately overstretched.

Fixing these problems now can help create the jobs we need. Research for the TUC shows that an £85bn investment in green infrastructure could help create 1.24 million jobs in the next two years, including 500,000 jobs through building and retrofitting social housing, and almost 60,000 jobs in electrifying transport.

And we should support our public services by investing in jobs. There are over 100,000 vacancies in social care, and 100,000 more in the NHS – even before we deliver a better system. Local government saw 100,000 redundancies in the past decade, jobs that are needed now to deliver vital services and help tackle the pandemic.

3. Work with unions and business on new rescue plans for hard hit sectors 

We’ve seen how the pandemic, and the social distancing measures it requires, has hit some types of business harder than others. Aviation and hospitality have been particularly badly affected. Government needs to come together with unions and businesses to design rescue packages for these sectors – including setting out how those plans can be used to deliver better and greener jobs. 

The Job Retention Scheme has done valuable work throughout the crisis in protecting people’s jobs, and is now supporting many people to work part-time. Government should extend it beyond October for businesses that can show they have a viable future but need more time to get back on their feet.

4. Prioritise progress towards equality 

We know unemployment is bad for everyone. But those who already face discrimination in the labour market often see their prospects held back even further.  BME groups faced higher unemployment in the 2008-09 recession, and still have high unemployment rates.

Research shows that during upturns disabled people are the last to gain employment, and during downturns they are first to be made unemployed. With the childcare sector on the brink of collapse, women’s employment prospects face being put back a generation.

The Chancellor needs to prioritise progress towards equality when he sets out his plans. That means tackling the insecure work that leaves BME workers disproportionately having their hours cut or being let go. It means monitoring the impact of employment programmes on different groups.

And it means the Chancellor needs to protect those who can’t work due to the fact they are shielding or have caring responsibilities from being forced out of work by extending the job retention scheme.

Mass unemployment and a new wave of inequality aren’t inevitable. We can build back better. But the Chancellor needs to be bold and act fast. 

Finance Ministers from the devolved administrations are urging the UK Government to ease the financial restrictions imposed on devolved governments so they can better respond to the coronavirus (COVID-19) crisis.

Ahead of the Chancellor’s Summer Statement, Kate Forbes, Rebecca Evans and Conor Murphy are calling for assurances that will give them the freedom to switch capital funding to day-to-day revenue and put an end to the arbitrary limits on borrowing. They are also looking for more clarity on details around the forthcoming Spending Review.

Kate Forbes, Scotland’s Cabinet Secretary for Finance (above), said: “The powers we are seeking will enable the Scottish Government to respond to COVID-19 more effectively and reboot our economy. They are relatively limited powers, but would ease some of the immense pressures on our budget and give us more tools to kick-start our recovery.

“At the moment, any extra money spent bolstering services and supporting the economic recovery must be taken from other areas. That creates risks for our essential public services, jobs and businesses. I am therefore calling on the Chancellor to ease these rigid fiscal rules and give us the flexibility we need to properly address the monumental challenges our economy is facing.

“I also want to see greater ambition in the level of investment in our economy. Last week the Scottish Government set out a proposal for an £80 billion UK-wide stimulus package. What is needed at this time of crisis is bold and practical policies that will boost consumption, promote investment and protect jobs.”

Northern Ireland Finance Minister Conor Murphy said: “It is crucial that the devolved administrations are equipped to respond swiftly and effectively to the challenges arising from COVID-19.

“More financial flexibility can help us deal with these challenges and use our budgets to support public services, protect the vulnerable, and deliver an economic recovery.”

Welsh Finance Minister Rebecca Evans said: “Our response to the COVID-19 crisis has been hampered by UK imposed rules that limit our ability to get more resources to the frontline.

“There is no clear rationale for these rules, which undermine good budget management in Wales.

“The Welsh Local Government Association, Wales TUC, FSB Cymru and Institute for Fiscal Studies and, more recently, the Senedd’s Finance Committee, have all made the same calls for change.

“The crisis has made the issue urgent. It’s time for the UK Government to act and provide the flexibility we need to respond and invest in Wales’ recovery.”

First Minister looks to Phase 3

Statement given by the First Minister Nicola Sturgeon at a media briefing in St Andrew’s House yesterday (Tuesday 7th July):

Good afternoon everyone, thank you for joining us. I will start with the usual update on the most recent COVID-19 statistics.

An additional 2 positive cases were confirmed yesterday – that takes the total now in Scotland to 18,302.

A total of 699 patients are currently in hospital with either confirmed or suspected cases of the virus. That is 17 more than yesterday overall, but it includes a reduction of 8 in the number of confirmed cases.

A total of 7 people last night were in intensive care with confirmed or suspected covid. That is 1 fewer than yesterday.

Since 5 March, a total of 4,102 patients who had tested positive and been admitted to hospital, have now been discharged from hospital.

However, I am afraid that during the last 24 hours, 1 death was registered of a patient confirmed through a test as having COVID-19. That takes the total number of deaths in Scotland, under that measurement, to 2,489.

I, of course, want to send my condolences to that person’s loved ones – and of course to everyone who has lost a loved one to this illness over these past few months.

I also want to thank, as always, our health and care workers. The entire country continues is grateful to you for what you have done and continue to do.

Now, I have three things I want to briefly update you on today before taking questions.

The first relates to the cluster of new Covid cases in Dumfries and Galloway last week. In total, 12 cases were identified as part of that cluster, and 23 contacts have been traced.

There were no new cases relating to this cluster yesterday. The view of the Incident Management Team, is that all chains of infection within Dumfries and Galloway have now been identified and controlled.

As a result, I can confirm that we are today lifting the recommended travel restriction that had applied to people in certain postcodes around Gretna, Dumfries and Annan. Our advice now is that people in those areas – like everyone else in Scotland – can travel more than 5 miles for leisure purposes.

However, like everyone else, they must follow strict advice summarised in the FACTS campaign.

In addition, people can now visit care homes in those areas – in line with the same strict guidelines that apply elsewhere in Scotland.

I want to take the opportunity again today to thank everyone who has been involved – both in Dumfries and Galloway, and also in Cumbria – in controlling this outbreak and in implementing Test and Protect so effectively.

I also want to thank the employers who enabled the rapid testing of their workforces; the contacts who co-operated by self-isolating when asked; and everyone in the affected postcodes, who stuck to the travel restrictions.

Although we all have a part to play in seeking to avoid this, it is the case, as we continue to lift restrictions of lockdown, there will inevitably be more clusters like this one in the weeks and months ahead and so it is reassuring, while we are absolutely not complacent, to see that this one appears to have been controlled so rapidly and so effectively. I am very grateful to everyone who played a part in achieving that outcome.

The second issue I want to raise today relates to the economic statement being made by the Chancellor of the Exchequer tomorrow.

The Scottish Government wrote to the UK Government on Saturday, to highlight again our view that an £80 billion stimulus programme is needed for the UK economy. To put that in context, that would be roughly comparable in ambition to the programme that Germany has recently adopted.

We believe that the UK’s programme should tackle inequalities, support jobs, and have a strong focus on investment in low carbon and digital infrastructure.

We have also recommended an employment guarantee for young people – a policy the Scottish Government is looking at ourselves. And we have called for a temporary cut in VAT to boost consumption – with especially low rates for our hospitality and tourism sectors.

Finally, we have proposed that Scotland should have greater financial powers – for example over borrowing – so that we can play our own part in, and shape our own response to, the economic implications of the pandemic.

It’s worth stressing again that the Scottish Government has on several occasions welcomed policies adopted by the Treasury during this pandemic – for example the job retention scheme, and this week’s support for the culture sector and I want to again say how appreciated, how welcomed and how important these kinds of interventions are.

We hope that we will be able to give a welcome to tomorrow’s statement as well but for that to happen, the policies put forward must meet the scale of the economic challenges that the UK faces and I very much hope that they will do.

The proposals that we have put forward on a constructive basis, are ambitious, practical, and sustainable. They, as I say, have been put forward in a spirit of collaboration and partnership. And we believe they would benefit Scotland and the whole of the UK. I therefore hope that they will be adopted tomorrow.

The need for ambition in economic policy is demonstrated by the final issue I want to briefly update on.

The Scottish Government currently publishes information about the Scottish Welfare Fund on a monthly basis.

The most recent report has been published today, and includes information about crisis grants.

Those are the payments we make available for people on low incomes who are suffering an unexpected and unavoidable financial emergency – for example if they take on caring responsibilities suddenly, and have to pay an unforeseen bill; or if they face a sudden gap in income because they have been made unemployed, and await redundancy or benefit payments.

Today’s report shows that the total value of crisis grant payments in May was more than 40% higher than in May last year. It also shows, however, that the value of payments in May was slightly lower than in March and April of this year, when there was a very large increase at the beginning of lockdown.

These increases demonstrate why the Scottish Government more than doubled the Scottish Welfare Fund in March. We knew then that the necessary public health measures needed to control Covid, would cause financial, emotional and health difficulties in households across the country.

They also provide a further illustration of why we do need to see further economic and fiscal stimulus so we can minimise the economic harm that has been caused by lockdown. And to demonstrate once again, of course why emerging from lockdown for all of us is so essential. We cannot, and this is a statement of the obvious, we cannot go on indefinitely, with severe restrictions on our economy and our way of life.

That is why I hope to be able to confirm on Thursday that we are moving to phase 3, in our route map out of lockdown.

However, and this point is just as important, it is also why we are determined to ensure that our emergence from lockdown, is safe and sustainable. We must absolutely minimise the risk of going back into lockdown later on in the year because we have allowed the virus to run out of control again.

That risk is a very real one – and we must not ever lull ourselves into a sense that we are somehow immune from it. If you doubt that, I would encourage you to take a look at what’s happening in other parts of the world.

In recent days in Australia, Melbourne and its surrounding areas have gone back into lockdown – new cases from community transmission there appear to be higher than in March/April. In Spain, Galicia and Catalonia are reinstating lockdown measures. So is Belgrade in Serbia.

And we are continuing to see a surge in cases in many parts of the United States.

Covid cases in Scotland are currently very low, down to the collective efforts of anyone. But we are still seeing some cases every day. The virus is still out there and it will easily come back if we allow it to.

As we lift the measures that have kept it under control, the risks of transmission increase again. It stands to reason as we start to interact more, we provide more opportunities for the virus to spread.

Outbreaks and clusters – as I said earlier – will happen.

But it is down to all of us to minimise the chances of them happening and to make sure that when they do happen, they don’t spread.

So in everything we do – particularly as you get out and about a bit more – we should be conscious of every possible bridge you might be providing for the virus to spread from one person to another or one household to another, so that we can avoid giving it those opportunities.

That is why we keep on stressing our public health campaign – Facts. It summarises the five key things all of us must remember in everything we do. And if these five things are all you remember over this next period, please make sure that you do remember them and that you apply them in your everyday lives. So just to run through again what they are:

· Face coverings should be worn in enclosed spaces such as shops and public transport. From Friday – as we go into I hope phase 3 – face coverings will be mandatory by law in shops with obvious exceptions, for people with medical conditions or young children. They already are in public transport.

· Avoid crowded places – indoors and outdoors.
· Clean your hands and any hard surfaces that you touch regularly.
· Two metre distancing remains the general rule.
· and self-isolate, and book a test, if you experience any symptoms of covid, don’t wait to do that, do that immediately.

If all of us remember these five basic measures, then we will minimise the opportunities for the virus to spread as we start to get back to normal and in doing that we will keep ourselves safe and will help to protect others and undoubtedly we will save lives.

So please continue to do all of these things as we slowly, carefully but steadily get our economy and our society back to normal. If we follow these measures then we will do that without giving the virus the chance to spread again which would take us back to the start of this.

So my thanks for your cooperation to date and please keep following these important public health rules.

Easing does it: £200bn recovery pan needed to tackle economic crisis

A £200bn economic recovery plan is needed from the Chancellor tomorrow to reflect the unprecedented scale and nature of the crisis Britain faces, and the lack of monetary policy firepower available to support the economy, according to a major new report published today by the Resolution Foundation.

Scottish dementia researchers head back into lab

Some dementia researchers funded by Alzheimer’s Research UK have been given special access to head back into the lab at the University of Edinburgh, while ensuring they comply with the strict government guidelines on social distancing.

While resourceful scientists funded by the UK’s leading dementia research charity were still managing to do some work in innovative ways wherever possible from home, this return marks a change in pace with scientists physically allowed back in the lab to resume their pioneering research.

Almost one million people in the UK are living with dementia, and over half of us know someone affected – in Scotland alone, 90,000, people live with the condition.

People with dementia experience memory loss, confusion, personality changes and gradually lose the ability to manage daily life. And sadly, it has become clear that people with dementia are more at risk of experiencing severe effects of COVID-19.

Dr Katie Askew from the University of Edinburgh is still predominantly working from home, but has now been given special dispensation to resume experimental work.

Research will not return to 100% capacity for some time, but this return will allow Dr Askew to set up new experiments and complete time-critical work after being unable to access the lab for three months. 

With only limited treatment options available for people who develop dementia, Dr Askew’s work funded by Alzheimer’s Research UK aims to examine the relationship between reduced blood flow and inflammatory changes in the brain.

It will also look for the effect these changes have on memory and thinking in Alzheimer’s and vascular dementia.

As there is considerable overlap in the symptoms caused by the two different forms of dementia, tests that can distinguish between these different underlying diseases could be very valuable.

Not only would this allow people with memory problems to receive a more accurate diagnosis, it would also help make sure the right people are being given potential future treatments at the right time.

Speaking about yesterday’s return to the lab, Dr Katie Askew from the University of Edinburgh, said: “Just as research is vital in the fight against COVID-19, we know that research will help us to overcome dementia.

“We are looking forward to resuming experiments that were postponed due to lockdown. I am able to return to the lab, albeit in a much-reduced capacity, to set up complete experiments and set up new long-term studies due to special dispensation from the University as my research project has significant time constraints.

“Dementia research has been hit hard and while we won’t be at full strength for a while, our lab is looking to start new experiments to complete our projects when it is safe for us to do so. We will ensure we are working safely to help avoid vital work like this stalling again as COVID-19 is still out there and remains a significant threat to our communities as well as our research.”

Any wider return to labs across Scotland will be based on Scottish Government guidance and approval from the host university.

Dr Rosa Sancho, Head of Research at Alzheimer’s Research UK, said: “Dementia affects 90,000 people in Scotland, and nearly one million people across the UK. Research carried out by dementia experts like Dr Askew is the only way we will create a world free of the fear, harm and heartbreak of the condition. 

“Alzheimer’s Research UK estimates it could be facing a potential drop in income due to COVID-19 of up to 45%, and dementia research has been hit hard by the pandemic. While all researchers will still have challenges to face, this physical return to work gives them and everyone affected by dementia hope that we will see progress in dementia research continue.

“Our funding for research like this would not be possible without donations from our fantastic supporters. Now more than ever, dementia research needs our backing. Anyone can donate to help dementia research regain momentum at alzres.uk/make-donation or by calling call 0300 111 5555.”

£4 million from UK Government to support delivery of social care in Edinburgh

Lothian MSP Miles Briggs has hailed over £4 million worth of UK Government funding to Edinburgh to provide vital support for social care to deal with the ongoing Coronavirus pandemic.

The Scottish Conservative and Unionist MSP, who is also his party’s Shadow Health Secretary, says the UK Government have provided £58 million worth of direct funding to care homes in Scotland, with over £4 million allocated to the capital’s health and social care partnership.

Mr Briggs says the millions of pounds in funding will help to protect care home staff and residents and help to reduce any transmissions and highlights the UK Government’s commitment to provide care homes with the protection they need.

He added that he hopes that the funding will be backed up by urgency from the SNP Government in carrying out widespread testing of care home staff, which was promised back in May by Jeane Freeman.

Commenting, Miles Briggs MSP said: “The UK Government have shown a real commitment to supporting our care homes through the Covid-19 pandemic.

“With Edinburgh receiving over £4 million in direct funding, this is a hugely welcome funding boost to help our care homes and their staff who have been on the frontline during this unprecedented crisis.

“Our care homes have cared for our loved ones and they deserve our full support to stop transmission of the virus.

“With the UK Government stepping up to provide funding for the capital’s social care, it must be backed up by the SNP carrying out rigorous testing which has been sadly lacking since they promised it back in May.”

Meanwhile, Briggs’ Westminster boss PM Boris Johnson has blundered into a row about care homes. Johnson has been widely criticised for saying “too many care homes didn’t really follow the procedures” during the coronavirus outbreak.

Mark Adams, CEO of charity Community Integrated Care, told the BBC the PM’s comments were “clumsy and cowardly” and he accused Mr Johnson of uttering ‘a massive untruth’.

Liz Kendall MP, Labour’s Shadow Social Care Minister, said: “There have been 30,000 excess deaths in care homes and at least 20,000 of these caused by Covid-19. 25,000 elderly people were discharged from hospitals to care homes without any tests whatsoever and frontline care workers were left without vital PPE.

“Staff who have gone the extra mile to care for elderly people, and experienced things the rest of us can only imagine, will be appalled to hear the Prime Minister’s comments.

“Boris Johnson should be taking responsibility for his actions and fixing the crisis in social care, not blaming care homes for this Government’s mistakes.”