7 August 2020 | UK NEWS
The current furlough scheme cannot continue indefinitely, according to the Chancellor of the Exchequer.
Rushi Sunak said in an interview on Good Morning Scotland during a trip to Scotland that it was “wrong to keep people trapped” in a situations where they are being furloughed but with no hope of regaining their lost jobs.
He was asked why the furlough scheme had not been extended to industries such as tourism, when they had been the most hard hit.
He replied that “most reasonable people” would agree the Government helping to pay private firms’ wages was “not something that can carry on indefinitely”.
Continuing, he said: “It is wrong to keep people trapped in a situation and pretend there is always a job that they can go back to – that won’t always be the case.
“In those situations, it’s better we look forward and provide those people with new opportunities.”
He recognised Scotland as a power brand in UK tourism.
As of late June, nearly 900,000 people in Scotland have been supported by the furlough and self-employment support schemes.
According to the UK Government figures, by the end of June, 736,500 Scots had been furloughed and a further 155,000 claims have been made for the scheme supporting self-employed workers.
Sunak’s comments run counter to the demands of the Scottish Government, which has called for the scheme to be extended.
The Scottish Government’s Economy Secretary, Fiona Hyslop, said she supported the extension of the furlough and support schemes, adding: “It is only fair that these businesses are supported when they’ve had to close through no fault of their own, and have undoubtedly helped save lives as a result.”
Ms Hyslop also recently called for more funding in Scotland in order to counter the virus response. She said: “We would use it flexibly, use it responsibly and use it to stimulate the economy and support jobs.”
But Mr Sunak said in the interview that the Scottish Government already has “significant flexibility” on funding, adding that the UK Government was “looking at revising and reviewing the fiscal framework over the next year or so”.
Rishi Sunak is the fourth UK Cabinet Minister to visit Scotland in recent weeks, following renewed calls from the incumbent SNP administration for Scottish independence.
