Sefton Central MP Bill Esterson has urged the government to “look again” at plans to end the furlough scheme protecting thousands of jobs in the constituency.
The MP said a sudden end to the coronavirus job retention scheme and the self employed income support scheme risked putting millions of people out of work and harming the economic recovery.
Mr Esterson voted in favour of a motion calling for targeted income support to businesses and self-employed people in those sectors of the economy that have been hardest hit by the virus and are most in need of continuing assistance. He also welcomed a report from the cross-party Treasury Select Committee that called for targeted extensions to the coronavirus job retention scheme and other measures to support workers and the economic recovery.
Labour’s motion in favour of a targeted extension of the support schemes for workers was defeated after the government whipped its Conservative MPs to vote against.
Mr Esterson said: “A cliff edge is facing hundreds of businesses and thousands of workers in my constituency alone. The government must look again at plans to end this support schemes. The coronavirus pandemic has caused untold economic damage through no fault of the hard working business owners and workers here and across the UK. The whole economy has yet to open up again. It is the wrong time to withdraw this financial support for industries such as the arts and hospitality, which are unable to go back to normal for reasons of public health.
“The government is putting the public health response to the virus at risk through withdrawing support and potentially encouraging people to take risks with their own health and the health of others. People who can’t afford to put food on the table or pay the mortgage or other bills will be put in an impossible position. We saw earlier in the pandemic that far too many low paid workers were forced to take risks with the health of other people and their own health because of financial concerns.
“The Chancellor is ploughing ahead with this one-size-fits-all withdrawal of the furlough scheme without, as far as we can see, any assessment of the impact it is going to have on unemployment and the economic recovery. This could put millions of people out of work.
“Even the Treasury Select Committee, which is headed up by a Conservative MP, Mel Stride, supports a targeted extension to the support on offer. Labour, trade unions, businesses, think tanks, backbench Tory MPs and now the Treasury Select Committee are all sounding the alarm. What will it take to make this stubborn Chancellor listen?”
Analysis by Labour has revealed that more than four million UK jobs across the country were still fully furloughed by their employer in the middle of August.This means nearly half of all workers who were moved onto the Government’s Coronavirus Jobs Retention Scheme (CJRS) in the early phase of the Covid-19 crisis remained fully furloughed by their employer over four months later.
Regional breakdowns show that over 450,000 jobs were at risk in the North West, 9,000 of them in Sefton Central.
Over two and a half million people had also made claims under the Coronavirus Self-Employed Income Support Scheme (SEISS) by the end of July. The final phase of that scheme opened last month.
The Treasury plans to withdraw both schemes in just six weeks’ time, at the end of October.
Mr Esterson added: “The government must do everything they can to save jobs and get people the support they need to get through this unprecedented period. This week the Conservatives voted to put those jobs and livelihoods at risk by pushing ahead with a one-size-fits-all withdrawal of both the CJRS and SEISS schemes across the entire economy by the end of October.
“Businesses in the hardest-hit sectors are still operating well below capacity and, with coronavirus cases rising again, it looks highly unlikely that they will be back to normal in just six weeks’ time. October’s deadline is a cliff-edge that could lead to a massive spike in unemployment.
“Labour is calling for targeted income support to businesses and self-employed people in the sectors of the economy hit hardest hit by the virus. But when Labour’s proposal was put to a vote, the Tories defeated it.
“The Chancellor says any deviation from his plan will damage the UK economy. Labour will hold him to that when wage support ends at the end of October. The reality is that millions of workers losing their jobs and businesses going bust will have a devastating impact on the economy for far longer if support is withdrawn too early. Other countries including Germany, France and Spain are continuing their support for jobs and the economy. It is reckless and irresponsible of the government in this country not to do the same.
“My Labour colleagues and I will do everything we can to save jobs in the weeks running up to the Chancellor’s furlough cliff edge.”
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