The International Monetary Fund has said the UK government should be "ready to redeploy" furlough if businesses are forced to close to halt the spread of coronavirus.
The IMF warned fresh waves of the Omicron variant represent a "major risk" to the economy - as Mirror Online reports.
The financial institution suggested a limited version of the multi-billion pound job subsidy scheme should be rolled out if new restrictions are required which result in firms being told to close.
READ MORE: Boris Johnson refuses to rule out more restrictions as first Omicron death confirmed in the UK
It said: "In the event of a virulent COVID-19 wave requiring widespread mandated closures, the authorities should be ready to redeploy a subset of the most successful previous exceptional programmes."
The IMF made reference to "a furlough scheme and targeted support to the most vulnerable households and small businesses" in the warning.
The IMF's managing director said the organisation does not envision a return to "full lockdown" but the UK has the " fiscal space " to afford further support if it is required.
Kristalina Georgiev said: "We do not expect the need to return either to the full lockdowns we have seen or the policy support of the kind that this type of lockdown requires.
"Should there be a need of more restrictive measures especially affecting contact-intensive services, then the policy support will have to be calibrated accordingly.
"What we know is that there has been quite a lot of experience in supporting vulnerable people and businesses. It can be applied then in somewhat different conditions appropriately."
"I have no doubt that if that becomes a necessity there would be appropriate action".
The remarks came as latest health-check of the UK economy pointed to a "mild slowdown" in growth in the new year as Plan B restrictions to halt the spread of Omicron take their toll.
It pencilled in GDP growth of 6.8% growth for this year, dropping to 5% in 2022.
The Bank of England has already warned that inflation is forecast to peak 5% next spring, sending the cost of living spiralling further.
On the eve of the Bank’s latest interest rate decision, the IMF report also warned against the dangers of not raising interest rates to keep price pressures under control - though it also acknowledged the risk of taking action too early which might hold back the recovery.
Ms Georgieva added that the Brexit effect on the economy is likely to worsen in the new year.
She told a virtual news conference: "Trade with the EU has dropped significantly and we expect there will be more impact ahead as the custom checks are going to be introduced in UK in the beginning of next year."
Receive newsletters with the latest news, sport and what's on updates from the Liverpool ECHO by signing up here.
