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Sunak's scheme putting jobs at risk, Labour says

Labour has accused Rishi Sunak of putting thousands of West Midlands jobs "on the scrap heap" with his latest plan to save the economy.

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Labour has criticised Rishi Sunak's latest jobs support scheme

Sir Keir Starmer's party said the Chancellor had failed to protect workers in industries hardest hit by the lockdown, including the entertainment, wedding and exhibitions sectors.

Mr Sunak's replacement for the furlough scheme subsidises wages in "viable jobs" for six months, with the Government topping up the wages of employees who can work at least one third of their usual hours.

Tories in the region have hit back, accusing Labour of failing to come up with any viable schemes to save jobs.

Labour has repeatedly called for furlough to be extended, a move which led Boris Johnson to claim the opposition wanted to keep people "out of work and in suspended animation".

According to Labour analysis, the number of businesses at risk in the West Midlands include 660 nightclubs, 70 cinemas operating at reduced capacity, 3,520 pubs and bars hit by the new 10pm curfew, and 1,140 creative and arts venues.

Lucy Powell MP, Shadow Business Minister, said: "The Chancellor is consigning whole sectors of our economy to the scrap heap, damaging lives and livelihoods, and threatening the recovery.

"Labour has called for the Government to come forward with an effective plan to recover jobs, retrain workers and rebuild businesses. This isn’t it.

"Even for those who can access it, the Job Support Scheme is badly designed and could lead to a wave of job losses, because the Chancellor’s sums do not add up for businesses. He must think again, before the jobs crisis reaches tipping point."

Dudley South's Conservative MP Mike Wood Has hit back at Labour claims

Mike Wood, the Conservative MP for Dudley South, said: "Last week Labour were complaining that we are wasting money supporting people through this pandemic, now they are saying we are not spending enough money.

"They are all over the place. This is the biggest economic and jobs support scheme in British history. It's more than anyone has ever done at times of war, or disease or recession.

"In 2008 Labour chose to bail out the banks, we are backing ordinary workers. That shows where our priorities are compared to theirs.

"Throughout this pandemic they have come up with absolutely nothing other than criticism of what we are doing. That is certainly no way to present yourselves as an alternative government."

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