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Bristol Post
Bristol Post
National
Gavin Cordon, PA Whitehall Editor & Alexander Brock

Coronavirus furlough scheme 'not sustainable' and will be wound down

The government's furlough scheme will be wound down as its costs are "not a sustainable situation", chancellor Rishi Sunak has said.

The scheme was brought in to help companies survive the coronavirus pandemic by paying up to 80% of their employees' salaries.

Wales Online reports the cost of the scheme has been £8 billion, with 6.3 million workers receiving pay from the government.

Mr Sunak has told ITV News this is not sustainable in the long-run and has confirmed he is looking at ways to wind down the scheme.

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People would be eased back into work in a “measured way”, he said, adding: “To anyone anxious about this, I want to reassure that there will be no cliff-edge to the furlough scheme.

“I’m working as we speak to figure out the most effective way to wind down the scheme and ease people back into work in a measured way.

“As some scenarios have suggested, we are potentially spending as much on the furlough scheme as we do on the NHS for example.

“Clearly, that is not a sustainable situation which is why, as soon as the time is right, we want to get people back to work and the economy fired up again.”

The Liberal Democrats have called for a “tapered” end to the programme, with the Treasury paying 50% of salaries for the first month after people return to work, falling to 30% after the third month, with employers picking up the full bill after the fourth.

Sir Ed Davey, acting leader, said: “The Government furlough scheme has done a good job at helping thousands of businesses through the lockdown, but the shadow of lockdown will be long, and the ‘new normal’ will be extremely challenging.

“Businesses and their staff need time to plan, and confidence the Government will be there, ready to support.”

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