If Rishi Sunak turned the furlough scheme into a plan for work sharing, he could save two million jobs

As the British economy carefully picks up speed, this is no time to pull the emergency brake, writes Carsten Jung

Sunak has been urged to extend the furlough scheme past October (Getty)

Rishi Sunak is about to pull the emergency brake just as the UK economy is just starting to pick up. Winding down the furlough scheme in October, despite clear signs that businesses and workers will still need it, would be a historic mistake. Reforming and extending the scheme now could prevent jobs losses and boost the economy in this time of need. It should be a no brainer.

The cliff edge created by the early end of the scheme will create a huge, damaging surge in unemployment. IPPR analysis found that as many as two million viable jobs could be lost in October because many sectors still have not fully recovered or reopened. A third of businesses say that their sales are still more than 20 per cent below what they were before the pandemic. New job listings are also down by more than half.

These shortfalls are big, but are expected to largely close in the new year, making it possible for many more people to return to their jobs.