Tories Warned Against Withdrawing Support for Jobs and Businesses in Gordon - Threat to North-east Jobs from Ending Furlough Prematurely

Published date : 28 September, 2021

Richard Thomson MP has warned the Chancellor against withdrawing support for jobs and businesses - as new analysis shows 2400 jobs in Gordon Constituency are at risk from Tory plans to terminate the furlough scheme prematurely at the end of this month.

Analysis from the House of Commons Library, using the latest HMRC data, has revealed that 116,500 jobs remain furloughed in Scotland at the last count - that is 5% of eligible jobs. Of those, 2400 jobs remain furloughed in Gordon - representing 5% of eligible jobs.

The analysis shows the number of furloughed jobs in Scotland fell by around 20% between the end of May and the end of June, and a further 20% between the end of June and the end of July. If the number continues to fall at the same rate, it could leave 75,000 Scottish jobs still furloughed when the scheme ends abruptly on 30 September.

Across the Aberdeenshire local authority area a total of 5300 jobs remain furloughed, representing 5% of eligible jobs.

The latest ONS data shows that unemployment is currently at a lower rate in Scotland than across the UK. The unemployment rate was at 4.3% in Scotland between May and July - below the UK rate of 4.6%.

Commenting, Richard Thomson MP said:

"It is vital that the Chancellor finally listens to SNP calls to extend the furlough scheme and deliver financial support for hard hit businesses and sectors. There is now a very real danger that Tory complacency on jobs could result in rising redundancies in the North-east and across the UK.

"With thousands of Scottish jobs under threat from Tory cuts, including 2400 at risk in Gordon, I am urging Rishi Sunak to ensure the UK government does not withdraw support for jobs and businesses abruptly and prematurely. This is especially important, given the risks of covid this winter and the fragile state of the UK economy.

"Too many people have been left behind by Westminster throughout the pandemic. The UK government must not create a Tory unemployment crisis, which could see thousands of people made redundant and left on the scrap heap, at the same time that Tory ministers raise taxes and slash Universal Credit by £1040.

"Scotland's recovery is increasingly under threat from damaging Tory cuts and tax hikes. The only way to keep Scotland safe is to become an independent country, with the full powers needed to build a strong, fair and equal recovery."

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