The Bank of England’s chief economist has warned against extending the government’s job retention scheme, saying that doing so would prevent a “necessary process of adjustment” taking place.
Amid growing calls from industry groups to keep the furlough scheme in place for certain sectors, Andy Haldane said that the coronavirus pandemic “has already delivered lasting structural change to the economy which does mean, regrettably, some businesses will probably not make it through and some jobs may well not be coming back.”
Speaking to the City AM podcast he added that “keeping all those jobs on life support is in some ways prolonging the inevitable in a way that probably doesn’t help either the individual or the business.”
Mr Haldane said: “The most painless thing that
