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Furlough scheme: UK has no choice but to extend it, but there are serious risks

By Alan Shipman, Senior Lecturer in Economics, The Open University

Finance ministers usually rejoice when businesses and employees alike both plead for a signature scheme to be extended. But for UK chancellor Rishi Sunak, demands to continue the country’s Coronavirus Job Retention Scheme, AKA the furlough, beyond March are as financially uncomfortable as they are politically hard to resist.

Originally launched in April 2020, the scheme has…

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