Harrogate Liberal Democrats and Conservative MP clash over impending end of furlough scheme

The government scheme to pay wages of workers on leave because of coronavirus has supported almost 16,000 jobs in the borough, but will come to a close at the end of October.

It has led to Liberal Democrat calls for the government to extend the support and go even further by making it available for more workers.

They have warned that ministers must not "undo the work and threaten mass unemployment".

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But MP Andrews Jones has said it's too early to say whether another extension will be needed and labelled the warnings over a surge in unemployment as "alarmist".

“There are still two months until the scheme ends on 31 October and time therefore to evaluate how many people who might otherwise be re-employed by their business are still on furlough," he said.

"There is also time to look at specific industries that might benefit from a continuation of support when the scheme ends.

"We should be focused on getting our economy going again rather than calling for emergency measures to continue."

From Tuesday, the government's contribution to wages will drop from 80 to 70 per cent, with employers having to make up the extra 10 per cent until the end of October.

Judith Rogerson, Liberal Democrat spokesperson for Harrogate and Knaresborough, said ending the support would be a mistake and that an extension is urgently needed to protect local jobs.

"We have all heard countless heart-breaking stories about people who lost their livelihoods overnight as a result of the coronavirus crisis, including here in Harrogate and Knaresborough," she said.

“It is simply unacceptable so many people in need are excluded from support for unjust reasons.

"The government should listen to Liberal Democrat plans to protect jobs and ensure no one is left behind."

The Bank of England, however, has backed the move, saying workers should be helped to ''move forward'' and not kept in unproductive jobs.

The Bank has also predicted the economic slump caused by Covid-19 will be less severe than expected, but will inevitably mean that some jobs become redundant.

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Earlier this month, Chancellor Rishi Sunak said he was sorry he could not protect every job through emergency measures.

Mr Jones said the support provided by government - also including business grants and VAT reductions - has amounted to tens of billions of pounds and will be enough to stave off a post-Covid economic depression.

“There has therefore been a lot of support for businesses and for jobs amounting to tens of billions of pounds," he said. "And I think it was right so that we could ensure our economy came through the crisis without descending into a depression like that of the 1930s.

“But at some point this support has to end and the right time to do that is as life returns to some degree of normality."

By Jacob Webster, Local Democracy Reporter