Calls for the return of furlough

An Aberdeen bar owner has been backed by a North East MSP in his call for furlough support to return as Omicron guidance wreaks havoc

Author: Lewis MichiePublished 17th Dec 2021

Scottish business groups are calling on the UK Government to bring back the furlough scheme.

They want support for companies who are being hit by restrictions and guidelines brought in to help prevent the spread of Omicron in Scotland.

Yesterday Nicola Sturgeon wrote to the Prime Minister requesting an urgent meeting, calling on the UK Government to initiate a return of furlough.

“Frankly, if we do not get Omicron under control, we are sacrificing the economic recovery we all want to see." she wrote.

“If the Treasury does not provide financial compensation and protection, this result becomes all but inevitable."

A meeting is yet to be arranged, but Number 10 said it's committed to working with the Scottish Government in the coming days.

However, in a Sky News interview Chancellor of the Exchequer Rishi Sunak commented that his "immediate priority" is to deliver existing support measures for the hospitality industry - such as a reduction in business rates and VAT.

"There is about a quarter of a Billion Pounds of cash sitting with local authorities that's been provided by Government to support businesses that need it" he said.

An Aberdeen bar owner is making his own calls for financial support.

Yesterday Stuart McPhee, Director of Siberia Vodka Bar in Aberdeen, told us the stay at home where possible message is having a massively detrimental impact on business.

"Yesterday between 12 and 5 I served 12 people in the city centre of Aberdeen." he said.

"What do we do to pay our staff before Christmas, what do we do to make sure our bills are paid and the lights are on?

"I really don't think we are far off the point where something has to give to be honest.

"It's heart-breaking it's absolutely heart-breaking to still be in this position."

On what needs to be done to help businesses like his, Mr McPhee told Northsound News:

"There really needs to be a more joined up approach from the governments, the UK government really needs to listen to the concerns of what's happening in Scotland.

"We need to see the re-introduction of either a sector specific or a broader furlough scheme for people who are going to lose out, and protect the jobs that need to be protected."

He's been backed by North East Green MSP Maggie Chapman.

Chapman had already said earlier this week that furlough was going to be required to prop up businesses as we tackle Omicron.

"The rate of transmission of the Omicron variant is frightening." She said.

"We need to be doing all we can to stop the spread, that'll mean not socialising in the way many people would wish to at this time of year.

"I wish we had the powers and the resources to implement a full furlough scheme.

"We do know that certain sectors will be hit harder than others, hospitality, non essential retail, theatres and cinemas.

"These are the sectors that desperately need support just now."

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