COWDENBEATH MSP Annabelle Ewing says that an extension to the furlough scheme beyond the end of next month would save hundreds of jobs in her constituency.

With the scheme to end at the end of October Ms Ewing told an employment support debate in the Scottish Parliament on Thursday afternoon that extending it would nationally save thousands of jobs and hundreds in the Cowdenbeath-Lochgelly area.

She spoke in addressing the furlough scheme currently in place because of COVID-19 and the impact that it's ending will have on her constituency and Scotland, describing the potential for “a tsunami of redundancy notices” and highlighting estimates that extending the scheme could save over 60,000 jobs.

During her speech, Ms Ewing said: “The furlough scheme is due to expire in just over six weeks. That would be a disaster for jobs, particularly those in the sectors that have been most heavily impacted by the Covid-19 global pandemic.

"The UK Government is on record as saying that it would do ‘whatever it takes’ to protect jobs and livelihoods; therefore, it must act now.

“The crisis is affecting people’s lives, careers and businesses, and their ability to pay their bills and look after their families. Predictions have been made that a failure on the part of the UK Government to signal an extension, in some form, to the furlough scheme will result, in short order, in a tsunami of redundancy notices being issued and significant job losses ensuing.

“As the member for the Cowdenbeath constituency, which comprises many communities that are still fragile following the mass unemployment policies of the Thatcherite Government of the 1980s, I find it absolutely unacceptable that we could see further scarring of those places, which still suffer from significant levels of deprivation".

Ms Ewing said that analysis carried out by the Scottish Government’s chief economist had estimated that the direct cost of extending the furlough scheme in Scotland until June next year, would be around £850 million. He concluded, she added, that the ensuing economic benefits, such as an increase in GDP, would mean that such spending could effectively pay for itself. It is estimated that such an extension could save 61,000 Scottish jobs.

“Perhaps I could put that £850 million up-front cost into context by recalling some examples," said the Cowdenbeath MSP.

"The current estimate for the UK Government’s spend on the high speed 2 rail project in England is £106 billion and counting; the estimate for the London crossrail project is £18 billion and counting; and, as was referred to earlier, the estimate for the Trident nuclear submarine renewal project is £205 billion and counting. If the UK Government can spend £205 billion on weapons of mass destruction, it would surely not be unreasonable for it to spend £850 million to save 61,000 jobs and so avoid both an economic crisis and the social devastation that would result from it.

“The reason why we are having to hold this debate is that the Scottish Parliament does not have the necessary powers just to get on and do what normal, independent countries across the world do—that is, borrow to help their economies through unprecedented times. If the UK Government will not extend the furlough scheme, we must secure the necessary borrowing powers to enable us to act to save jobs and businesses in Scotland, and to prevent mass unemployment and social devastation."

Chancellor Rishi Sunak earlier this week suggested that he will be "creative" in protecting jobs after the furlough scheme ends, potentially hinting at some sort of extension.