Chancellor of the Exchequer Rishi Sunak yesterday praised the “inspiring” people and businesses of Scotland during a visit to meet those supported by the UK Government’s £352 billion Plan for Jobs.
Rishi Sunak travelled to Fife, Edinburgh and Glasgow where he visited several businesses that have returned workers from furlough, held a roundtable of Scottish business leaders and saw how Scotland is creating jobs and leading our green recovery.
Around one in three jobs in Scotland have been supported by the UK Government’s support package and more than 90,000 Scottish businesses received more than £4.1 billion in loans since the start of the pandemic.
The Chancellor’s visit came as new figures released yesterday show that the number of people in Scotland on furlough has halved in the last three months, with just 141,500 jobs still furloughed.
Chancellor of the Exchequer Rishi Sunak said: “It’s been inspiring to hear stories of people and businesses in Scotland that are now starting to feel the weight of the pandemic lifting off them as they get back to work – our Plan for Jobs is working and it’s great to see people succeeding after a year of uncertainty.
“It’s been a challenging time but the UK Government has delivered one of the most generous packages of support in the world, protecting one in three Scottish jobs.
“Scotland will be key in ensuring the UK’s economic success – creating jobs, powering our growth and driving a green recovery by hosting COP26 later this year.”
During the visit, the Chancellor toured the Offshore Renewable Energy Catapult Turbine in Leven, Fife. The turbine is the leading technology innovation and research centre for offshore renewable energy.
He met SMEs who have used the turbine for development and have benefitted from UK Government funding for green ventures.
The Chancellor highlighted the important contributions Scotland makes to the UK, including towards the UK’s Net Zero transition and climate change leadership on the world stage, ahead of the COP26 Glasgow conference in November.
He also conducted a roundtable with Scottish businesses in the retail banking sector at the new Queen Elizabeth hub in Edinburgh, where he thanked them for their role in responding to the pandemic, keeping call centres and banks open for vulnerable customers, and distributing many of the UK Government business support schemes.
The Chancellor went on to see preparations for the International Festival and the Fringe. The UK Government gave £1m of funding to Edinburgh Festivals this year, to help the festival promote itself digitally to a bigger audience.
He visited a number of small businesses including Liggy’s Cake Company, which was supported through the furlough scheme and is now hiring new staff.
He also visited Dynamic Earth, an award-winning visitor centre in Edinburgh dedicated to educating people about the earth and environmental issues, and met with several staff who have returned from furlough and met a group of children taking part in the centre’s outdoor activities.
NUMBERS ON FURLOUGH FALL TO LOWEST LEVEL SINCE START OF PANDEMIC
- Almost three million people have moved off furlough since March, according to latest data
- More than half a million people left the scheme in the month of June alone, with fewer than two million people now remaining on furlough
- Chancellor welcomes new data while meeting furloughed employees on a visit to Scotland
ALMOST three million people have moved off the furlough scheme since March as the economy began to bounce back and businesses reopened, according to new statistics.
Figures published yesterday which cover up until the end of June, show the fewest number of people on furlough since the scheme launched in March 2020, down from a peak of nearly nine million at the height of the pandemic in May last year.
1.9 million people remained on the scheme by the end of June, more than half a million fewer than the 2.4 million at the end of May.
The Business Insights and Conditions survey (BICS) shows numbers may have fallen even further – with estimates that between 1.1 and 1.6 million people are still on furlough.
It comes as the Chancellor visited Scotland where he has hailed the economic strength of the union and where the Government’s Plan for Jobs has supported businesses and families during the pandemic.
Ahead of meeting Scottish businesses and individuals in Edinburgh, Glasgow and Fife, where he talked to employees who have returned from furlough, Rishi Sunak welcomed the statistics.
Chancellor of the Exchequer Rishi Sunak said: “It’s fantastic to see businesses across the UK open, employees returning to work and the numbers of furloughed jobs falling to their lowest levels since the scheme began.
“I’m proud our Plan for Jobs is working and our support will continue in the months ahead.”
The figures also show a striking fall in the number of young people on furlough, who for the first time ever, no longer have the highest take-up of the scheme.
In the last three months, younger people have moved off the scheme twice as fast as all other age brackets, with almost 600,000 under 25s moving off the scheme.
Jobs in sectors including hospitality and retail are now also moving off the scheme the fastest, – with more than a million coming off the scheme in the last three months.
This decline means those in hospitality and retail no longer make up the majority of all those on furlough.
Furlough was extended until the end of September to allow for businesses to adjust beyond the end of the roadmap and to bring people back to work.
Starting on 1st August, the employer contribution to furlough costs will increase to 20% and that contribution level will continue until the scheme ends at the end of September.
The Government’s Plan for Jobs continues and is still in place to provide support, including Kickstart, traineeships and more work coaches to help people find jobs.
The government says this ‘is is the right thing to do’ to reduce long term economic scarring in the labour market and our ongoing Plan for Jobs means that we will continue to support people as the economy recovers.
