North staff could face 'cliff-edge' when furlough scheme ends, says Stone
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ALMOST 2000 people in the far north could face "a cliff-edge" when the UK Government's furlough scheme comes to an end in September.
That is the warning made by local MP, Jamie Stone, who says many firms in his Caithness, Sutherland and easter Ross constituency will be wondering if they can afford to bring back staff once the furlough scheme finishes in a few weeks.
The Liberal Democrat MP described the situation as "unacceptable" at a time when coronavirus restrictions remain in place and accused the government of "failing thousands of businesses" and leaving employees across the UK facing uncertainty.
Mr Stone said recently released UK Government figures show that approximately 1,800 people were furloughed in Caithness, Sutherland and easter Ross at the end of May 2021 – eight per cent of the eligible workforce in the area.
Across the United Kingdom, the sector with the largest percentage of furloughed staff was the accommodation and food services, with 34 per cent of the sector’s workforce unable to work. This was closely followed by arts, entertainment and recreation at 29 per cent of the sector on furlough.
Mr Stone said: "The Highland economy is fragile. Many local businesses will be wondering if they can afford to bring back staff once the furlough scheme winds up in September.
"Instead of patting itself on the back, the UK Government should be urgently concerning itself with the serious possibility of forcing mass unemployment in the far north. Thousands of people could soon face a cliff edge.
"The Conservatives would do well to remember that millions of people across the UK have been excluded from financial support for the entirety of the pandemic. Their contempt for hard working people is unacceptable."
The government says 11.6 million jobs have been supported since the furlough scheme began.
From March 2020 to the end of September 2021, the cost of furlough will come to about £66bn, according to estimates from the Office for Budget Responsibility.
At the start of the pandemic it was feared that more than one in 10 workers would become unemployed but the unemployment rate is currently less than one in 20.
