Stephen Morgan MP has warned 15,000 jobs could be at risk in Portsmouth unless the Chancellor delivers a “smart” furlough scheme to tackle Britain’s jobs crisis and for the temporary 5% reduced rate of VAT for the hospitality, tourism and culture sectors to continue by as much as another six months.
It comes following new analysis by the Official Opposition estimates that over 15,000 people were still furloughed by their employer in late January in Portsmouth.
According to the new analysis revealed today, seven months after Sunak launched his ‘Plan for Jobs’ last July, nearly 10,000 people are also currently claiming out of work benefits in Portsmouth.
However, Labour is now calling for Sunak to immediately announce an extension to the furlough scheme that is set to expire at the end of April, to remove uncertainty for local businesses and workers.
Meanwhile, the Shadow Chancellor is also calling for the temporary 5% reduced rate of VAT for the hospitality, tourism and culture sectors to continue for another six months or until three months after the lifting of health restrictions – whichever comes later. The reduced rate is set to expire on 31st March, when it will return to 20%.
Labour is also calling on the Chancellor to set the fourth grant of the Self-Employed Income Support Scheme (SEISS) at 80% of pre-crisis profits before the forthcoming Budget announcement.
The Member of Parliament for Portsmouth South, said,
“The Chancellor’s Plan for Jobs is clearly not working. We need urgent action to secure, recover and create jobs to help those on furlough to get back into work, as well as to help those claiming out of work benefits to find new employment.
“Extending the furlough scheme and providing tax relief to the hardest hit businesses will give workers and SMEs in Portsmouth the certainty they need to support their recovery.
“People need emergency action today, not more dither and delay until the Budget.”
Mr Morgan previously called for greater support for the hardest hit businesses and self-employed after last year’s Spending Review.
