Labour Warns Over A Million Hospitality Jobs Could Be Lost If The Furlough Scheme Is Not Extended

Labour Warns Over A Million Hospitality Jobs Could Be Lost If The Furlough Scheme Is Not Extended.

Over a million hospitality jobs could be lost if the Government’s furlough scheme is not extended, warns the Labour party. The party said more than a million workers in the industry are still on furlough, and there are fears many hospitality businesses are planning to make staff redundant in the next three months.

Labour said the furlough scheme is approaching a “cliff-edge” in April and should be extended, as well as reformed to include new training incentives to help workers improve their skills.

The party also called for a reduction in the rate of VAT for the hospitality, leisure and cultural sectors to continue for another six months, or until three months after the lifting of health restrictions – whichever is later.

Lucy Powell, shadow minister for business and consumers, said: “Business owners want to protect their livelihoods and those of their employees, but they can’t plan in the dark and they’re crying out for certainty from the Government on business rates, VAT and the furlough scheme.”

She added: “Boris Johnson and Rishi Sunak have presided over the worst economic crisis of any major economy. They need to back our businesses and support jobs as the vaccine is rolled out, to secure our economy and get Britain back on the road to recovery.”

The boss of Young’s said on Friday that pubs must have the same restrictions as July when they reopen following the latest lockdown in order to avoid thousands more job losses. Patrick Dardis, chief executive officer, said anything less would be “unviable” if pub doors are kept shut until May.

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