Rishi Sunak urged to avert jobs crisis

Fears of 1980s-style unemployment rise as support deals end
MPs on the Treasury committee have urged the chancellor to extend furloughing for certain sectors
MPs on the Treasury committee have urged the chancellor to extend furloughing for certain sectors
DANIEL LEAL-OLIVAS

Rishi Sunak has been warned that he risks derailing the economy’s recovery from its coronavirus-induced recession if he does not stave off a jobs meltdown.

The “rule of six” Covid-19 restrictions that start tomorrow, local lockdowns — the latest being in Birmingham, quarantine rules for some foreign destinations, and fear of a no-deal Brexit are all compounding the chancellor’s uncertainties.

He is under pressure to do more to protect jobs before his budget — originally expected in November — as the furlough scheme comes to an end next month. Analysts dread another slowdown in the economy, which grew 6.6% in July as it climbed out of its deepest-ever recession.

The unemployment rate is 3.9%, with about 1.3 million out of work, but there are worries