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Govt doesn’t want to extend furlough scheme – despite new restrictions

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The government is “not minded” to extending the furlough scheme, a minister has said.

Foreign Secretary Dominic Raab said the Chancellor does not want to keep the scheme running, with it due to stop at the end of October.

Opposition leaders have been calling for the scheme to be extended to avoid a cliff edge effect they fear could see many people lose their jobs for good.

He told Sky News: “I don't think the Chancellor's minded to wholesale extend the furlough scheme”.

He added that the government are looking at "targeted measures".

The governor of the Bank of England has also called for the government to “stop and rethink”.

Speaking on a webinar hosted by the British Chambers of Commerce, Andrew Bailey said: "We have moved from a world of generalised employment protections, to specific and focused areas."

He pointed out that during the peak of the crisis, around 30% of private sector employees were making use of the scheme.

Now, it i used more heavily by the hospitality, retail and culture industries.

Mr Bailey added: "[Furlough] has helped manage the shock, to firms and to labour [but now] the use of it, as far as we can tell, is more concentrated.

"I think it is therefore sensible to stop and rethink the approach going forward, without any commitment to what that might be."

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  • Coronavirus

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