London Daily

Focus on the big picture.
Saturday, Aug 22, 2026

Is the chancellor cooking up a new jobs scheme?

Is the chancellor cooking up a new jobs scheme?

Rishi Sunak has dropped his heaviest hint yet that there may be a new measure or scheme to boost job creation.


"A tricky balancing act" is how the chancellor himself described to me the next stage of support for an economy that will continue to be affected by the pandemic.

He dropped his heaviest hint yet that this will include a new measure or scheme to boost job creation, as the jobless numbers start their inevitable turn upwards.

That task, he says, is his "number one priority" and "I'm always looking for interesting creative, innovative and effective new ways to support jobs and employment," he told me on a visit to a pottery factory in Stoke.

What it is not is the extension to the current furlough scheme. The purpose of the visit to the Emma Bridgewater factory was to celebrate the return to work from furlough of its staff.

The Treasury calculates that half of those furloughed are now back in their jobs, and the chancellor is adamant that people are "itching to get back to work".

'Right thing to do'


Therefore he does not back the views of his predecessor Gordon Brown, for example, for the scheme to be extended, even as I pointed out, given his plan to wind it down did not factor in this week's new social restrictions.

"I wouldn't be being honest with people if I pretended that it was always going to be possible for people to return to the job that they had. Now in terms of helping those people, I don't think the right thing to do is to endlessly extend furlough," he said.



So that is pretty clear. The furlough scheme was designed with a specific problem in mind - to keep people connected to jobs that would return after the pandemic peak passed.

Any future package would be concentrated on a different target - to help create new and replacement jobs, or to allow for short time work.

Not 'oven ready'


And the truth is, even today's jobless numbers have not yet revealed precisely where the pressure points will be. Some in government hold out hope that the flexible UK labour market will mean that joblessness will in fact not rise quite as much as feared.

A package launched today, would, for example, have focussed on the specific problem of youth unemployment. It is, though, a more permanent scheme of "short time working", with a lower level of subsidy to accompany a partial return of hundreds of thousands of workers, that is attracting interest in business, union and cross party circles.

I have written before about Germany's Kurzarbeit system which was built up after the financial crisis and deployed for this current crisis.

Number 11 is still sceptical about sectoral targeting. How do you deal with supply chains, for example, a media buyer who works in the aviation industry? Will cash be wasted on businesses that do not need support?

But the very facts that the chancellor pointed out to me in Stoke, that people are quite quickly coming off furlough, show that is less of a worry than might be thought. The ongoing generosity of such a scheme would have to be assessed in the light of the spending review, and high levels of government debt.

Something is cooking at the Treasury as it looks beyond furlough scheme.

Though it is not yet what might be referred to as "oven ready".

Newsletter

Related Articles

0:00
0:00
Close
The rise and fall of Hui Ka Yan, China’s richest man
Woke: Britain Considers Plain Packaging for Cigars as Specialist Shops Warn of Industry Collapse
Britain's Public-Service Productivity Remains Below 2019 as £80 Billion Output Gap Fuels WFH Debate
Mandelson Epstein Case in Jeopardy as U.S. Files Stay Out of Reach
Prince Harry and Six Others Ordered to Pay £9.5 Million After High Court Defeat
Petrol Bombs Set Luxury Cars Alight Outside Birmingham Wedding as Police Hunt Three Men
Bitcoin Surges Toward $80,000 as Short Squeeze and ETF Inflows Ignite Crypto Rally
Prince Harry and Co-Claimants Ordered to Pay £9.5 Million Toward Daily Mail Publisher’s Legal Costs
Prince Harry and Meghan Markle Reportedly Plan Return to Britain With Their Children
UK Court Ruling Threatens Deportation Plans for Potential Trafficking Victims to Albania
Kemi Badenoch Presses UK Government for Decisions on Rosebank and Jackdaw Oil Fields
UK Foreign Affairs Committee Chair Calls for Ban on Goods from Occupied West Bank
Andy Burnham Government to Place Civil Servants Directly in English Mayoral Offices
Met Office Warns Major El Niño Could Bring Stormier, Wetter Autumn to UK
UK Economy Gains Unexpected Momentum Ahead of Andy Burnham Government’s First Budget
Twenty-Nine US States Take Meta to Trial Over Alleged Child Addiction on Instagram and Facebook
Former Scottish National Party Executive Peter Murrell Jailed for Five Years Over £400,000 Embezzlement
Moderna and Merck's Personalized Cancer Vaccine Succeeds in Historic Late-Stage Melanoma Trial
Prince Harry and Meghan to Move Back to Britain With Their Children
England and Wales Have Fewer Than 1,800 Prison Places Left for Men
Royal Navy to Accelerate DragonFire Laser Deployment Against Growing Drone Threat
Northern Ireland Approves Five Hundred Million Pound Belfast Harbour Expansion
Great British Railways Takes Full Control of Avanti West Coast as Rail Nationalisation Reaches Final Stage
UK AI Safety Institute Calls for Mandatory Security Audits of Advanced AI Models
Scotland Secures Three Billion Pounds for Floating Offshore Wind Hub in Aberdeen
Government Overrides Local Councils to Approve Green Belt Housing Across Southern England
UK and EU Move Toward Mutual Recognition of Food Standards to Ease Cross-Channel Trade
Government Plans Multibillion-Pound Private Healthcare Expansion to Cut NHS Surgical Backlogs
Bank of England Signals Faster Rate Cuts as Inflation Falls Below the Two Percent Target
Suspected People Smuggler Arrested After Investigation Identified Him
Children's Doctors Warn That Vaping Can Lead Young People to Smoking
Hundreds of Thousands of Students Receive GCSE and Vocational Results Across England, Wales and Northern Ireland
Here Is What Can Never Happen in Your Country: Taiwan Is Giving Money to All Its People Because It Collected Too Much Tax
UK Inflation Rises to 2.9% as Energy Bills Jump
UK Issues New Conduct Guide for Asylum Seekers on Consent and Respect
Moderna Shares Surge After Positive Personalized Skin Cancer Trial Results
UK Markets Watch US National Debt Surpass Forty Trillion Dollars
UK Broadcasters Urge Government to Invest in Digital Participation and Broadband
CVC Capital Partners and Standard Life Launch Two Billion Pound Pension Risk Transfer Venture
UK Private Sector Productivity Growth Accelerates in Second Quarter
UK Foreign Secretary Ed Miliband Condemns Israeli E1 Settlement Tender
UK Watchdog Investigates Trainline, Virgin Atlantic and RED Driving School Over Hidden Fees
Prince Harry and Meghan Markle Plan Move to Private Home Outside London
UK Retail Sentiment Improves as Summer Spending Boosts Consumer Confidence
UK Aid Cuts Draw Warnings From Charities Over Humanitarian Consequences
UK Financial Conduct Authority Issues Guidance for Motor Finance Redress Scheme
UK Met Office Launches Aviation Programme to Reduce Climate Impact of Persistent Contrails
Former UK Civil Service Chief Received Record 500,000 Pound Severance Payment
West Midlands to Bring Bus Network Under Public Franchising Model
UK Government Drops Plan to Relax Affordable Housing Requirements After Backlash
×