24 hours to save jobs – new analysis shows high street still under strain in South East, including Portsmouth as 1,216, 600 furloughed workers start losing support in a matter of hours.
Three weeks ago, Stephen Morgan MP released a statement outlining his response to damning stats showing how many people have fallen through the gaps in government support across the region. New data today shows that even in the short time since then, things have become markedly worse.
Analysis released today by the Labour Party shows:
- Footfall for key high street businesses is still down 40% on pre-pandemic levels in the UK
- 43.7% of businesses in the hardest hit sector still report being temporarily closed
- 1,216,600 furloughed workers in the South East begin losing support in a matter of hours – making it a 7.1% increase in just a few weeks
New analysis by the Labour Party shows many businesses in the South East still face significant challenges due to coronavirus.
Google mobility data shows that footfall for retail and recreation businesses, including restaurants, cafes, museums and cinemas, is down 45% in Portsmouth compared to pre-pandemic levels. Meanwhile, footfall on public transport and around workplaces is still down 18%.
Meanwhile, the latest ONS data shows some firms have still not reopened, whilst a large number of those that have report lower turnover.
A fifth of businesses in the food and accommodation sector have still not been able to reopen, including nearly 30% of SMEs. 43% of businesses in the arts, entertainment and recreation sector are also still temporarily closed, including nearly half of SMEs.
Meanwhile, of those that have opened, 84% in food and accommodation and 72% in arts and entertainment report reduced turnover from pre-pandemic levels.
Stephen Morgan MP said: “Hardworking Portsmouth people, through no fault of their own, have fallen through the substantial gaps in government support. From the self-employed to new businesses, people from a variety of occupations are facing financial turmoil.
The marked deterioration of the state of employment in our region, even just over the last two weeks, is a testament to the fact more must be done.
The government was too slow into lockdown, too slow on testing, now its too slow to protect jobs. That is why I support Labour’s 5-point plan that will fight for jobs, back our businesses, leave no-one behind, keep workers safe and drive up job creation”
In under 24 hours, these firms begin losing support from the Job Retention Scheme and will have to start meeting some of the cost of non-working hours for any retained employees (either fully or partially furloughed).
This change risks handing furloughed workers In the South East their P45;
- 1, 216, 600, people have been furloughed an increase from 1,035,400 – equivalent to 29% of the workforce
- 203, 400 workers in the food and accommodation, equivalent to 72% of the workforce
- 73, 500 workers in arts, entertainment and recreation, equivalent to 69% of the workforce
While the arts and food sectors have seen an increase in output over the last few weeks, this is solely down to an easing of lockdown restrictions. Many still reserve concerns that businesses will not survive unless more comprehensive support is offered by government.
Labour’s Shadow Chancellor Anneliese Dodds MP said: “The Chancellor’s refusal to abandon his one-size-fits-all withdrawal of furlough is an historic mistake that risks a python-like squeeze on jobs in the worst-hit sectors. The reward for months of hard work and sacrifice by the British people cannot be a P45.
It’s not too late for the Chancellor to see sense, change course and support the businesses and sectors that need it most. But even if he does, there is still much to do.
That’s why Labour is today launching the Jobs Jobs Jobs campaign – to offer concrete, constructive proposals that would protect the economy and people’s livelihoods.”
Labour is calling on the government to reverse course and extend the furlough scheme so that it supports jobs in the worst-hit sectors and targets aid to struggling industries.
This would put the UK in line with other major developed democracies, with many extending their versions of the Job Retention Scheme or similar wage subsidy schemes:
- France announced in July that their emergency wage subsidy scheme would operate for up to two years.
- Germany already benefited from an existing wage subsidy or ‘short-time’ work scheme, introduced after the financial crisis to prevent unemployment during downturns. The scheme was expanded in March, with these changes lasting until the end of the year. Workers can receive a subsidy for up to a year, meaning the government will be subsidising wages well into 2021.
- Australia recently announced that its Job Keeper wage subsidy scheme would be extended until March 2021 for the worst affected firms. The scheme was due to end in September and is still open to new claims.
- Ireland announced last week that its temporary wage subsidy scheme would remain in place until March 2021.