Bank of England’s top economist warns against furlough scheme extension

Andy Haldane says extension to job retention scheme risks delaying ‘inevitable’ shake-out of firms hit by Covid-19

The Bank of England’s chief economist has warned the government against extending the furlough scheme, arguing it will delay an “inevitable” shake-out of businesses hit by the Covid-19 pandemic.

Andy Haldane said a “necessary process of adjustment” was under way and an extension of the job retention scheme beyond the 31 October deadline would only delay this process taking place.

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