Caithness and Sutherland 'among areas that will suffer greatest economic impact'
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A north politician has warned that Caithness and Sutherland are among the areas that will suffer the greatest economic impact of the pandemic.
Maree Todd is urging the Chancellor of the Exchequer to use tomorrow's UK budget to tackle what she calls the growing inequalities facing communities in the Highlands.
She has called on Rishi Sunak to extend the furlough scheme beyond April, insisting that withdrawing it prematurely would be "catastrophic".
Ms Todd, an SNP MSP for the Highlands and Islands, pointed to a report from Highlands and Islands Enterprise showing the disproportionate effect of Covid-19 on the region when compared with other parts of Scotland and the UK.
The report predicted a population decline of 21 per cent in Caithness and 12 per cent in Sutherland over the next 20 years.
It noted that the jobless rate across Caithness and Sutherland had increased by 2.7 percentage points between August 2019 and August 2020, with unemployment in the Wick travel-to-work area rising from 4.2 per cent to 6.5 per cent and in the Thurso travel-to-work area from 3.1 per cent to 5.4 per cent. In the Golspie and Brora travel-to-work area, unemployment went up from 2.8 per cent to 5.8 per cent.
This gave a jobless rate for the two counties of around six per cent, as against 5.7 per cent for the Highlands and Islands as a whole.
The report also pointed to the economic fragility of Argyll and the Islands, Lochaber, Skye and Wester Ross.
The reasons include a high proportion of employment in sectors most exposed to the impact of Covid-19 – such as tourism, accommodation and food services – and well as "Brexit vulnerabilities" and "vulnerable communities".
Ms Todd said: “The data included in the HIE report shows the extent of the inequalities facing communities in the Highlands and the disproportionate impact of Covid-19 on the region.
“It is crucial that the UK Chancellor uses the budget to address these growing inequalities and commits to protecting jobs, extending the furlough scheme and plugging the gaps in coronavirus support.”
The HIE study showed that in the period March to June 2020, 35 per cent of eligible employments were furloughed in the Highlands – higher than the national average of 32 per cent and the highest of all local authority areas in Scotland.
Ms Todd said: “The Chancellor must extend the furlough scheme beyond April and guarantee that it will be in place for as long as it’s necessary. Withdrawing this lifeline support prematurely would be catastrophic for the Highlands.
“We also need to hear a firm commitment to making the £20 Universal Credit uplift permanent. The Highlands saw a 75 per cent increase in the number of claimants last year. Reducing the payment when so many people are facing financial insecurity would be reckless and unforgivable.”
The SNP is also calling on the Chancellor to exempt support from devolved governments – such as the Covid Winter Hardship Payment and £500 NHS bonus payment – from tax and benefit deductions.
Ms Todd said: “People deserve to receive every single penny of support. Rishi Sunak must do the right thing and use the budget to ensure devolved government coronavirus support is exempt from tax.
“The Scottish Government is doing everything within its power to support the most vulnerable at a time of national crisis. The UK government must pledge to do the same.”
