Sadiq Khann, the Mayor of London stated that the “capital faces an ongoing crisis" and that "we can no longer afford to cut jobs with the economy resting on a financial knife edge”.
Assembly member Leonie Cooper asked whether the Chancellor’s 2020 ‘Winter Plan’ will be enough to prevent a rise in unemployment in London, this Thursday at the Mayor’s Question Time (MQT).
Official figures show that the UK’s unemployment rate has risen to its highest level for two years.
Claims for Job-seeker's allowance and Universal Credit have increased by 165% since March, redundancies in the UK have nearly doubled relative to last year, and the number of job vacancies in London are 40.5% lower than a year ago.
Whilst Greater London Authority (GLA) figures show unemployment rates have remained at a constant 5.3% across the last three months, the stability suggests government support is still mitigating the impact of COVID-19, only confirming an employment crisis yet to come.
According to latest the National Office of Statistics report roughly 9% of the UK is still on the Government’s furlough scheme and the number of unemployment is likely to rise further in the coming weeks and months as Government support schemes are wound down.
Sadiq Khan stated that he would: “continue to lobby the Government about the importance of a decent financial package scheme, and for it to extend its furlough scheme". He expressed his concern over economic sense in the long-term, in letting businesses go bust and letting people be made redundant rather than support them.
According to the GLA, the government has spent around £190bn so far on the coronavirus pandemic. Its job retention scheme has supported more than 9m jobs.
However, Sadiq Khan stated: “Boris Johnson needs to be doing what other colleagues are doing in Europe... implementing a more generous furlough scheme similar to that of France and other countries".
This opposes Prime Minister Boris Johnson’s claims in the Commons that the UK’s furlough scheme is: “far more generous… than anything provided in France, Germany or Ireland”.
The government has said its Job Retention Scheme will run until the end of October this year. Whilst, France, Germany and other countries have pledged to extend state subsidy for considerably longer, although the amount of government support may fall over time.
Last week Chancellor Rishi Sunak unveiled a £30bn package to support jobs as the furlough scheme is wound down. It included a job retention bonus programme which will pay firms to take back “furloughed” workers.
Yet Sadiq Khan said: “the Government must urgently announce a comprehensive package of new financial support for those sectors hardest hit”, warning that many of these jobs could be permanently lost if the government fails to take targeted action.
But with a bleak winter feeling apparent, Rishi Sunak assures the Government will be: "protecting jobs through the winter months".
By Emily Latimer
