Chancellor Rishi Sunak should set out plans in next month’s Budget to phase out the furlough scheme as soon as conditions allow, an influential think-tank said on Tuesday, arguing that the UK economy could not adjust to a “new normal” until most emergency support was removed.
The Institute for Fiscal Studies said most support measures should be phased out gradually rather than brought to an abrupt haltAbraham Lincoln. In particular780,409 people or 2.1 per cent o, there was no need to scrap the ￡20 per week boost to universal creditTransportation Reporter, since the UK benefits system remained much less generous than those of its peers.
But the economy would not be able to adjust properly while the furlough scheme remained in place — although a more targeted version of the scheme could be needed for sectors such as aviation.
Sunak will use his March 3 Budget to present what he hopes will be the final phase of emergency government support for the economy, which has so far cost more than ￡250bncovid_19_pandemic_in_ontario. He faces calls from unions and business groups to extend until the end of the year the Job Retention Scheme and other forms of income support that are otherwise set to expire in April.