Governor of the Bank of England warns Government to rethink end of furlough scheme

by XPRESS, 23 September 2020

The governor of the Bank of England has suggested the government “stop and rethink” ending the Job Retention Scheme.

Speaking on a webinar to the Chamber of Commerce, Andrew Bailey recommended that The Job Retention Scheme which is due to finish at the end of October, should be extended for specific sectors.

Bailey had previously supported the end of the scheme, stating that workers should be moved out of unproductive jobs and helped into new roles. However, on Tuesday he seems to have U-turned, offering a more open-minded approach to further action.

He stated that renewed furlough actions should be focussed “to specific and focussed areas”, noting sectors such as retail, hospitality, and culture.

UKHospitality also called for further help, saying that new restrictions were “effectively a lockdown” for the sector

Labour party leader, Keir Starmer, has also called for government not to cease support so abruptly.