The chancellor’s apparent determination to wind up the job retention scheme, as fears of a Covid-19 second wave grow, makes no economic sense. He should follow the example of Germany and France
The chief economist of the Bank of England offered some tough love on Monday to employees who fear that when the government ends its flagship job retention scheme (JRS) at the end of next month, their P45 will follow soon after.
In an interview, Andrew Haldane said that continuing the furlough payments in some form would be a case of merely “prolonging the inevitable, in a way that probably doesn’t help either the individual or the business”. Some businesses, he suggested, were destined to go to the wall. Therefore, “a necessary process of adjustment” should not be further delayed.