黑洞社区

The government has saved many jobs in construction through its furlough scheme but it is no longer needed, according to some of the country鈥檚 largest contractors. The scheme is due to finish at the end of next month.

Paul Hamer, chief executive at Sir Robert McAlpine, told 黑洞社区: 鈥淓arly in the lockdown, we had to take the decision to furlough around half of our workforce. The vast majority of our people are now back at work.鈥� 

He warned that, while the scheme has undoubtedly saved jobs, 鈥済iven the ongoing geo-political uncertainties with respect to covid-19 and the wider economy, it remains to be seen as to whether the short-term benefits can be sustained鈥�.

But Hamer is not calling for it to be extended beyond October. 鈥淭he current uncertainty makes it hard to determine whether an extension would be beneficial or detrimental to the economy,鈥� he said. 

鈥淪ome industries will be differently affected and might benefit from an extension of the scheme,鈥� he added.

A spokesperson for Laing O鈥橰ourke, who furloughed more than 1,000 staff at the peak of the pandemic, said: 鈥淭he furlough scheme has definitely helped 鈥� both individuals and the companies that employ them.

鈥淚t provided businesses that faced serious cash flow pressures with a cost reduction that will have helped some of them survive and then start to recover.鈥�

Asked whether they thought the scheme should continue beyond next month, the spokesperson said: 鈥淎t this moment in time, we don鈥檛 believe so as it is important that companies stand on their own two feet again as soon as possible.鈥�

This comes after 黑洞社区 revealed last week how construction firms had claimed more than 拢2.9bn through the scheme - almost 10% of the total 拢30.9bn that the government paid out up to 31 July.

More than 769,300 construction employees were furloughed, or 60% of those eligible, with 76% of employers in the sector making use of the scheme, according to the latest figures from HMRC.

Darren James, chief executive of Keltbray, said: 鈥淚 dread to think not just our industry but where we would all be if there wasn鈥檛 a furlough scheme. I think there would have been organisations having to face the fact they would have had to make huge swathes of their workforce redundant on the spot and I think the government has to be congratulated on what it has done.鈥�

He added: 鈥淚 don鈥檛 think extending furlough beyond October would be appropriate for construction because we鈥檙e finding ways of going back to work. But I do accept that for some industries a longer-term game might be more appropriate.鈥�