Politics

"Time is running out for Rishi Sunak to avoid a jobs crisis"


A month ago Chancellor Rishi Sunak had a chance to avoid a jobs crisis.

His Summer Statement should have offered hope for the millions of British workers worried about their jobs. 

It should have been the moment we got the UK economy firing again with a proper Back to Work Budget to help workers and businesses hit hardest.

Instead he pulled the rug from under their feet.

He yanked away income support just when it was needed most. He gave second homeowners a tax break – but broke the back of many businesses.

Chancellor Rishi Sunak is being urged not to ‘pull the rug’ from under the feet of businesses

A small business owner I spoke to this week said that he just couldn’t see how they’d make it through without extra support. 

I could hear the tension in his voice and see how it pained him to feel his business – and the local jobs it supported – slipping through his fingers.

I warned the Chancellor that withdrawing furlough in one fell swoop was a recipe for disaster. And I told him handing over billions in bonuses to firms who were going to bring back staff anyway wasn’t the way to save jobs.

He didn’t listen.

Now the warning lights are flashing red on the UK economy. 

More than 20,000 jobs gone or going since then. Employees on the UK payroll down by 650,000 since March. Record-low job vacancies. 

And next week we may slide into recession for the first time since the 2008 financial crisis.

This isn’t just about coronavirus: It’s about how the government dealt with it.

Almost five months since we went into lockdown ministers still haven’t got a grip. Until they get test, trace and isolate working, people won’t feel confident to go out and our economy won’t recover.

And until the Chancellor understands that some businesses still need help ­– especially the ones that haven’t even reopened yet – jobs will continue to go at an alarming rate.

His one-size-fits-all withdrawal of income support is a historic mistake that British workers just can’t afford. 

It’s not too late to change course – but time is running out.





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