MP Calls for Extension of Furlough Scheme

Alan Brown MP has pleaded with the chancellor to extend the furlough scheme to save jobs.

The representative for Kilmarnock and Loudoun has written to Rishi Sunak asking him to extend the furlough scheme in order to safeguard jobs and businesses.

The letter signed by all SNP MPs highlights businesses face a triple hit of laying off thousands of staff due to Treasury support being pulled, bracing for the impact of a second wave of coronavirus cases and further restrictions being introduced. As well as navigating the damaging economic consequences of Brexit as the Tories charge towards a bad deal or a no-deal exit.

This week, Mahle announced its plans to cut up to 45 of the 181 workers in its Kilmarnock plant. Analysis from the Scottish Government shows that extending the furlough scheme by eight months could save around 61,000 jobs in Scotland.

Commenting, Alan Brown MP said: “Of course, I am bitterly disappointed with the news this week that Mahle in Kilmarnock had planned on issuing redundancies. I received updated correspondence from the company who detailed that this moment in time, the number of redundancies was 17 – and that they hoped this would be found on a voluntary basis.

“Although this is still heart wrenching news, it is positive that this was not as bad as initial fears of up to 45 jobs set to be lost. Having said that, there are clearly ongoing concerns about the possible future losses which means ongoing worries for all the workers at the plant.

"This year we have already seen the disastrous effects of the pandemic hit Wabtec, and now sadly Mahle.

“We in Kilmarnock know only too well the devastation caused by industry being ripped out the heart of the town, that is why I will do everything in my power to try and prevent these job losses. I have already written to Unite the Union and Mahle directly offering support and anything they would like me to raise with the UK Government.

“It is clear that the extension of the furlough scheme will save jobs, not just in Kilmarnock and Loudoun, but up and down the whole of the UK.

"The Chancellor once pledged that he would 'do whatever it takes' to protect the economy, but he is now setting the country up for a winter of significant and entirely avoidable redundancies. 

"Rather than abandoning workers and employers in their time of need, the Tory government must U-turn on its plans, move to extend the scheme into 2021, and fix the gaps in support to ensure no one is left behind.

"The Scottish Government's calls for the devolution of financial powers needed to protect our economy have been completely ignored and, without consultation with the devolved governments, the UK government has scrapped the Budget - putting Scottish budget plans at risk.

"By withholding the investment and powers required, scrapping the Budget, and threatening an extreme Brexit, the Tory government is confirming that only by becoming an independent country can we properly protect Scotland's interests."