Leeds West MP Rachel Reeves warns local businesses won't survive when furlough ends
The Leeds West MP is urging the Chancellor to use his financial statement this week to give support to local businesses and employees hit by Covid-19.
In a letter to Chancellor Rishi Sunak, Rachel Reeves has warned that city businesses will be forced to make redundancies as the financial support from the Government begins to taper to end from August 1.
Her comments come after she recently hosted an online meeting with small businesses to hear first-hand the latest about the impact of the pandemic.
While programmes like the Job Retention Scheme have been a lifeline for many local firms and workers, she told the country's finance boss that they fear for the future when the support starts to be wound down in under four weeks.
Ms Reeves wants the Government to use the Chancellor’s financial statement on Wednesday for a Back to Work Budget to protect as many jobs as possible amid fears that unemployment will soar as a result of the economic impact of coronavirus.
She said in her letter: "Small businesses are a key part of our economy and community and are crucial for getting our economy out of the recession that this pandemic has caused.
“However, it has become clear through my conversations with local small businesses that Government support needs to be provided in the long term as we come out of this crisis. For, if not many small businesses will be impacted dramatically.
“Small businesses in Leeds West will require more support from the Government as we come out of the crisis. I urge you to consider further support for small businesses, so that we can ensure that they survive this crisis.”
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