London Daily

Focus on the big picture.
Friday, Dec 12, 2025

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
Former UK Prime Minister Boris Johnson proclaims, “For Ukraine, surrendering their land would be a nightmare.”
Microsoft Challenges £2.1 Billion UK Cloud Licensing Lawsuit at Competition Tribunal
Fake Doctor in Uttar Pradesh Accused of Killing Woman After Performing YouTube-Based Surgery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
UK Officials Push Back at Trump Saying European Leaders ‘Talk Too Much’ About Ukraine
UK Warns of Escalating Cyber Assault Linked to Putin’s State-Backed Operations
UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
UK Orders Fresh Review of Prince Harry’s Security Status After Formal Request
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
"App recommendation" or disguised advertisement? ChatGPT Premium users are furious
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
The Disregard for a Europe ‘in Danger of Erasure,’ the Shift Toward Russia: Trump’s Strategic Policy Document
Two and a Half Weeks After the Major Outage: A Cloudflare Malfunction Brings Down Multiple Sites
UK data-regulator demands urgent clarity on racial bias in police facial-recognition systems
Labour Uses Biscuits to Explain UK Debt — MPs Lean Into Social Media to Reach New Audiences
German President Lays Wreath at Coventry as UK-Germany Reaffirm Unity Against Russia’s Threat
UK Inquiry Finds Putin ‘Morally Responsible’ for 2018 Novichok Death — London Imposes Broad Sanctions on GRU
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
Macron Says Washington Pressuring EU to Delay Enforcement of Digital-Regulation Probes Against Meta, TikTok and X
UK’s DragonFire Laser Downs High-Speed Drones as £316m Deal Speeds Naval Deployment
UK Chancellor Rejects Claims She Misled Public on Fiscal Outlook Ahead of Budget
Starmer Defends Autumn Budget as Finance Chief Faces Accusations of Misleading Public Finances
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
UK Budget’s New EV Mileage Tax Undercuts Case for Plug-In Hybrids
UK Government Launches National Inquiry into ‘Grooming Gangs’ After US Warning and Rising Public Outcry
Taylor Swift Extends U.K. Chart Reign as ‘The Fate of Ophelia’ Hits Six Weeks at No. 1
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
×