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Economic Development

Covid-19: Calls for furlough scheme to be adapted and extended for automotive and aerospace sectors

Chair of top Government business committee wants Rishi Sunak to pledge targeted, sectoral support at October's Budget

Darren Jones MP (right) visiting Airbus in Broughton

There are calls for the Government to pledge new financial packages for automotive and aerospace firms after the industries were battered by the coronavirus production standstill.

Thousands of jobs have been lost across the country in those key sectors since the pandemic began.

Darren Jones MP and chair of the House of Commons Business, Energy and Industrial Strategy (BEIS) Committee, visited the Vauxhall plant in Ellesmere Port and Airbus in Broughton, North Wales on Thursday, where he met with management and unions to discuss how local jobs could be protected.

He has now called upon on Chancellor Rishi Sunak to pledge support to the sector ahead of his Budget announcement in October, which Mr Jones described as the "most important since the war".

According to Mr Jones, that support could mean extending and altering the furlough scheme - for example the Government paying a day's wages a week for manufacturing staff, while the companies cover the other four - similar to a scheme taking place in Germany.

He said: "Automotive and aerospace are two of the jewels in the crown of British manufacturing, but they've seen an enormous drop off in consumer demand, as well as business demand.

"It's going to take a little longer for these sectors to get back to business as usual, so we are asking for sector specific support recognising that manufacturing is an important part of the British economy and accounts for so many jobs.

"We've already seen over 10,000 jobs cut across these sectors, and that's before the end of the furlough scheme."