Coronavirus Job Retention Scheme

Christine Jardine Excerpts

Thursday 17th September 2020 Commons Chamber

[Stuart C. McDonald]

I said specifically that the scheme would not continue for ever and it cannot continue for ever, but that should be based on an analysis of the economy, where we are at and the number of jobs available. Conservative Members keep telling us that people should be looking to move into employment, but any analysis by any major think-tank says that those job opportunities are just not there at the moment, so we have to wait for a time when the economy is on a more even keel, which will not, on any indication, be by 31 October.

[Christine Jardine (Edinburgh West) (LD)]

As the hon. Gentleman possibly knows, the Liberal Democrats agree that the scheme should be kept going. We have specifically looked at June next year as a minimum, which would cost £10 billion. That is not much more than withdrawing the scheme would cost, as the Chancellor is proposing at the moment, and is a drop in the ocean compared with the eventual cost if we do not support the economy.

[Stuart C. McDonald]

I agree wholeheartedly. I do not want to put a date on it today, but the costed proposal from the Scottish Government, which has been looked at by the National Institute of Economic and Social Research, is for an eight-month extension. That would save tens of thousands of jobs in Scotland, and even more across the United Kingdom, and pay for itself, because debt as a percentage of GDP would fall rather than rise. It makes perfect sense from every single point of view. It has to be about analysis rather than just picking a date in the calendar, which is essentially what the Government have done.

All in all, the scheme is a great investment, and a better one, as hon. Members have said, than the deadweight job retention bonus scheme. As we have heard, many countries are extending their similar schemes, and we should not be the outlier in that regard. There is an urgency about the situation, because employers are deciding right now what they are going to do with furloughed employees at the end of October, so we cannot wait. We need a commitment from the Government today.

The scheme does not require to be completely unchanged. We have heard about some of the flexibilities and the changes that were made as we went along, and more changes could be made as we go ahead. It could be targeted by sector, as some have suggested. There must be a focus on areas where there are local lockdowns or other restrictions. We could look at the other models that have been implemented by countries such as France and Germany, which involve short time and wage subsidies.

I join hon. Members in highlighting the desperate plight of those who have been left off the lifeboat altogether for totally unjust reasons. That includes a huge number of people who simply changed jobs at the wrong time; those who work only a small number of hours for a particular employer, which puts them below the minimum salary threshold; those paid in the form of dividends; and those working as PAYE freelancers, especially in industries such as TV and the arts, who have been hung out to dry.

Many came close to qualifying under the job retention scheme or the self-employment income support scheme, and it is heartbreaking that they were left qualifying for neither. The reality is that many have been left with nothing, or next to nothing, because they are not entitled to other support. Essentially, the Government response appears to be that it would be too hard to fix for everybody, but that is as nothing compared with the hardship that has been inflicted on my constituents.

In the context of the Government being happy to invest £10 billion in a job retention bonus scheme that is likely to have little impact, investing in support for those excluded people could be transformational for them. That may well be more labour-intensive for HMRC, rather than relying on real-time information submissions, but it can be done. As the Minister knows full well, there is a tax office in Cumbernauld that is set to close, possibly in the next few months. If he wants to keep that tax office open, I am sure that the employees there would be happy to do the work required to extend the scheme. At the end of the day, my constituents and the excluded across the UK are not asking for anything more than fairness. I hope that the Treasury will think again and offer those people a hand on to that lifeboat.

--- Later in debate ---

[Christine Jardine (Edinburgh West) (LD)]

I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson) on achieving this debate. It must surely be evident to the Government from the number and variety of occasions when this subject is raised by Members in this place that there is a general feeling across the House and in the country that we need to continue the support that the job retention scheme has offered.

I will not subject right hon. and hon. Members to a repeat of my contribution to last week’s debate, other than to say that we are in a crisis in this country that poses the greatest threat to our health, our economy and the wellbeing of individual households across the UK of any in our lifetimes. It is only because of the strength of the job retention scheme so far that we have been able to protect about 10 million jobs. Seven million people are currently supported by the furlough scheme, and to withdraw it at the end of October seems rash and too soon.

A Government Member said a little while ago that the scheme got us through the worst of the crisis and there is no longer any need for it. Surely we all saw the news today that the north-east of England has gone back into lockdown, posing an immediate threat to jobs, retail and wholesale in that part of the country. If we were in any doubt, surely that is evidence that we need to continue to support all industrial sectors through the crisis.

As I mentioned earlier, it is estimated that continuing the scheme until June 2021 would cost the country about £10 billion. That might seem like a large amount of money, but it will be dwarfed into insignificance by the long-term cost to our economy, our wellbeing and each sector if we pull the rug from underneath them at the moment. There should, instead, be a bridge to transition us from where we are now to whatever our economy will look like afterwards. This is an opportunity to support families, to invest in a transition to green jobs and to ensure that this country has a future that is economically stable.

Millions of people in this country who are currently on the furlough scheme look to us for support and reassurance about their future, and to hear that they will not face the financial hardship that many of them fear. It is incumbent on us to ensure that we do not let them down by removing that support too soon.