Political leaders in Harrogate react as government extends furlough scheme until March

Chancellor Rishi Sunak today conceded in a statement to the Commons that more support is needed as the economic recovery had slowed, saying businesses now faced heightened "uncertainty" beyond the new lockdown.

The furlough scheme had already been extended in England for the second shutdown - but will now apply across the UK until the end of March and cover 80% of a person's wage up to £2,500 a month.

Welcoming the announcement, Harrogate and Knaresborough MP Andrew Jones said extending the scheme was the "only rational approach" and that it shows the government is being "agile and responsive" in the pandemic.

He said: “Over the coming months we are likely to see more changes to our everyday lives and to our working lives as we adapt to new knowledge about the virus and try and support our economy and protect our health.

"I have no doubt that during that period there will be loosening of restrictions, tightening of restrictions, support for more industries who can’t re-open and getting others moving where they can safely. The extension to the furlough package is part of the support for our economy.

"That is the only rational approach to a situation which changes rapidly."

These photos show Harrogate's empty streets as businesses close and lockdown begins

Mr Sunak also announced billions of pounds of other support for the economy, including more money for self-employed people.

Support through the Self-Employment Income Support Scheme will be increased - with a third grant covering November to January calculated at 80% of average trading profits, up to a maximum of £7,500.

At the same time, anyone made redundant after 23 September can be rehired and put back on furlough.

Liberal Democrats in Harrogate said they have been calling for the extra support for some time and that they believe the chancellor has waited too long.

Judith Rogerson, the local party's parliamentary spokesperson said: "Liberal Democrats have been calling for an extension to the furlough scheme for months, so of course this extension is very welcome. I just wish the government hadn’t left it until the eleventh hour, with too many people already having lost their jobs.

"Meanwhile, there are still over three million people who continue to be excluded from receiving any financial support since the beginning of the pandemic.

“The government needs to use this second lockdown to put in place a long-term, sustainable plan. That means sorting out the track, trace and isolate system and making sure that proper support is put in place for everyone who needs it."

Councillor Geoff Webber, leader of the Liberal Democrats on North Yorkshire County Council, added: "Local people and businesses had been warning months that they needed the furlough scheme to be extended if we were to avoid job losses and business closures.

“Had our area’s MP listened to these worries, rather than dismissing them as ‘alarmist’, many jobs and livelihoods could have been protected."

It is estimated furlough claims have cost the taxpayer £41.4bn - with costs now expected to rise to about £50bn.

By Jacob Webster, Local Democracy Reporter