Why the furlough reforms risk a hard landing for the economy

The central assumption of policymakers is that customers and orders will be flowing back for companies, that the market will be able to take over from the state as the source of workers’ incomes. We must hope this proves correct, says Ben Chu

Rishi Sunak received praise when the scheme was first rolled out (AFP/Getty)

As any astronaut knows, coming back down to Earth is just as dangerous as taking off.

Those hazards will have been in the minds of Treasury officials as they designed the details of how the government’s jobs furloughing scheme will be withdrawn.

Take away the subsidy from firms too rapidly and you risk a spike in joblessness as companies sack furloughed workers that they can no longer afford to keep on.