Richard Leonard calls for targeted Scottish furlough extension

Scottish Labour leader Richard Leonard has called on Downing Street to create a targeted furlough scheme for Scotland that “takes into account the requirements of the Scottish economy”.

In a panel event today at Labour’s online ‘Connected‘ conference, Leonard set out his vision for a Scotland-specific furlough scheme after the Chancellor Rishi Sunak hinted this week at plans to U-turn on a targeted furlough extension.

The Labour Party and various trade unions have both been calling for the Chancellor to reconsider the blanket end of furlough set for October after it was revealed that the UK could see ‘Great Depression’ levels of unemployment as a result.

Commenting on the party’s plan for the May 2021 Holyrood elections, the Scottish Labour leader said: “We cannot wait until next May, we need action to save jobs now.

“Because in Scotland, oil and gas jobs are going, tourism and the arts are decimated, night-time economies are closed, our high streets are in peril. Aviation and aerospace are haemorrhaging jobs. Entire industries are under threat and we have an unemployment rate that is the highest across UK nations.

“Everyone knows the pandemic and the recession will not be over by the end of October. The Chancellor has hinted this week he has been forced into a U-turn on the withdrawal of economic support by way of targeting schemes.

“So my call today is this – if support is to be targeted by the Chancellor I am calling for a Scottish targeted scheme that properly takes into account the requirements of the Scottish economy.”

Shadow Chancellor Anneliese Dodds called for a targeted extension to the furlough scheme in a parliamentary motion put forward by Labour on Wednesday, but the proposal was rejected by the Tory-dominated Commons.

The government has since hinted at the possibility of a partial U-turn on that position after Rishi Sunak told MPs this week that he was prepared to be “creative” to save jobs once the furlough scheme ends.

Leonard also used the online event this afternoon to set out Scottish Labour’s aims for the 2021 election, explaining that the party’s programme for Holyrood would create “130,000 new jobs”.

He said: “Scotland faces a double threat. An SNP that wants to separate Scotland from the UK and a Scottish Tory party doing Boris Johnson’s bidding, whose Brexit betrayal is the single biggest threat to the future of the UK.

“It’s only the Scottish Labour Party who will deliver the people’s priorities, to address the public health crisis, to tackle poverty and inequality, to build the homes we need and give people dignity in retirement and a National Care Service.”

The online panel, hosted by Angela Rayner, featured Labour candidates for the 2021 elections, including Manchester metro mayor Andy Burnham, London mayor Sadiq Khan and Welsh First Minister Mark Drakeford, as well as Leonard.

Rayner used the event to reiterate the party’s backing for Leonard, who recently faced a leadership challenge from disaffected MSPs. She said: “I and Keir will be relentlessly focused on working alongside Richard and the Scottish Labour Party.”

Labour’s usual annual conference was cancelled earlier this year due to Covid, and the party unveiled ‘Connected’ as an online replacement. It will include virtual speeches, training and panels for Labour members and runs until 22nd September.