Lib Dems fear jobs support scheme is 'too little, too late' to save many Harrogate district jobs

Harrogate and Knaresborough's Liberal Democrats have expressed concerns that the government's new jobs support scheme is "too little, too late" to save many job losses.
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Chancellor Rishi Sunak last week announced that workers will get three quarters of their normal salaries for six months under the new plan to replace the current furlough scheme which ends in October.

To be eligible, employees must work for at least one third of their normal hours and Mr Sunak said he hoped it would "benefit large numbers".

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However, local Liberal Democrats have argued that the support will not go far enough to protect hard-hit events, tourism and hospitality businesses already struggling to keep staff on their books.

Judith Rogerson, Liberal Democrat parliamentary spokesperson.Judith Rogerson, Liberal Democrat parliamentary spokesperson.
Judith Rogerson, Liberal Democrat parliamentary spokesperson.

Judith Rogerson, the party's parliamentary spokesperson, said: "Local businesses that cannot afford to pay a third of wages to their staff will inevitably be forced to make significant numbers redundant.

"I am thinking in particular about the events industry where it is at present almost impossible to earn any income. We know how crucial this sector is to our local economy here in Harrogate.

“What’s more, the announcement said nothing about the millions of people who have been excluded from government support throughout the Covid pandemic."

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Mrs Rogerson said the party had been campaigning for more jobs support and criticised Harrogate MP Andrew Jones for “showing a lack of leadership” on the issue.

Mr Jones last week welcomed the new support scheme and praised further measures announced for the hospitality and tourism sectors, including a VAT rate stay at 5% until the end of March.

"These sectors are important to Harrogate and Knaresborough, and we need them to be strong in the coming months as that helps our whole area," he said.

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Nearly three million workers - or 12% of the UK's workforce - are currently on partial or full furlough leave, according to official figures.

The government's contribution to workers' pay will fall sharply compared with the furlough scheme. Under furlough, it initially paid 80% of a monthly wage up to £2,500 - under the new scheme this will drop to 22%.

The payment will be based on an employee's normal salary, with the government contribution capped at £697.92 per month.

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"The primary goal of our economic policy remains unchanged - to support people's jobs - but the way we achieve that must evolve," Mr Sunak said.

"I cannot save every business, I cannot save every job."

By Jacob Webster, Local Democracy Reporter