As the furlough scheme ends, what would an extension of state support for workers actually look like?

Analysis: Many believe that recent disappointing news on infections and the economy will force the Treasury to do more to support jobs and livelihoods. Ben Chu looks at the options

Sector-focused schemes could see restaurants remain eligible for furlough cash (PA)

The government insists the coronavirus job retention scheme – known as furlough – which has been winding down since August will definitely end on 31 October.

The timetable for winding down furlough, announced by the chancellor in May, was predicated on the assumption that the economy would be recovering strongly by now and that the virus would be under control.

That assumption now looks increasingly questionable. A spate of local lockdowns and new national public health restrictions introduced this week – all of which are likely to have a negative economic impact on many businesses – have heaped pressure on the Treasury to put in place something to replace the furlough scheme in order to prevent joblessness spiking back to 1980s levels in the weeks and months ahead.