London Daily

Focus on the big picture.
Saturday, Mar 14, 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
Middle East War Highlights Strategic Importance of Strong UK–Ireland Cooperation
Weak Growth Signals UK Economy Was Faltering Even Before Middle East Energy Shock
Marks & Spencer Tops UK Fashion Retail Rankings as Most Considered Brand
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Royal Navy to Acquire Twenty Uncrewed Surface Vessels for Autonomous Warfare Testing
Russia Summons British and French Envoys After Ukrainian Storm Shadow Strike on Strategic Facility
Starmer Confirms Britain Will Maintain Sanctions on Russia Despite U.S. Policy Shift
UK Moves to Refine AI Definition in Investment Security Reform
UK Economy Stalls in January as Growth Unexpectedly Falls to Zero
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Tesla Secures Approval to Supply Electricity Directly to Homes Across Britain
Prince William Delivers Tribute to Australia’s Naval Alliance Amid Renewed Royal Spotlight on the Country
UK Foreign Secretary Travels to Saudi Arabia to Reinforce Support for Regional Allies
Putin’s ‘Hidden Hand’ May Be Assisting Iran in Conflict With Trump, UK Defence Secretary Warns
UK Sets April Deadline for Tech Platforms to Strengthen Online Protections for Children
Elon Musk Moves Into Britain’s Energy Market as Tesla Wins Licence to Supply Power
UK Watchdog Warns Fuel Retailers Against Profiteering Amid Iran War Price Surge
Report Claims Iran Used UK Charity Network to Expand Influence
United States and United Kingdom Establish Joint Standards for Counter-Drone Technology
Iran May Be Laying Naval Mines in Strait of Hormuz, UK Warns Amid Escalating Gulf Tensions
US Deploys Bunker-Buster Bombs to UK Airbase as Iran Conflict Intensifies
British Troops in Iraq Intercept Iranian Drones Targeting Coalition Base
Release of Mandelson Files Raises Tensions as UK Seeks Stable Relations With Donald Trump
UK Documents Reveal Starmer Was Warned About Mandelson’s Epstein Links Before Ambassador Appointment
Nearly Five Hundred UK Mortgage Deals Withdrawn in Two Days as Market Volatility Forces Lenders to Reprice
Three Cargo Ships Hit Near Iran as Attacks Spread to Strategic Strait of Hormuz
Why British Police Repeatedly Declined to Investigate Jeffrey Epstein’s UK Links
UK Parliament Ends Hereditary Seats in House of Lords, Closing Chapter on Centuries of Aristocratic Lawmaking
EU and UK Urge Israel to Act Against Rising West Bank Settler Violence Amid Regional Tensions
US Senator John Kennedy Says Keir Starmer Should Not Be Trusted for Military Advice Amid Iran War Debate
UK High Court Rejects Attempt to Revive Terrorism Charge Against Kneecap Rapper
Revolut Secures Full UK Banking Licence After Multi-Year Regulatory Wait
Kentucky’s Bench Boost Powers Wildcats Past LSU in SEC Tournament Opener
British Couple Die After Being Pulled From Water at Australian Beach During Family Visit
Global Energy Agency Announces Record Release of 400 Million Barrels to Stabilize Oil Markets Amid Hormuz Disruption
British Airways Suspends UK Repatriation Flights as Middle East Travel Disruption Deepens
US Forces Prepare Ordnance at RAF Fairford as Strategic Bombers Deploy for Middle East Operations
Nigel Farage Faces Criticism After Saying Britain Should Stay Out of Iran War
Landmark UK Trial Begins Over Sony’s PlayStation Store Pricing
UK High Court Rejects Bid to Challenge Britain’s Chagos Islands Agreement With Mauritius
Finnish Duo Triumphs in England’s Annual Wife-Carrying Race, Winning a Barrel of Ale
How U.S. and UK National Security Strategies Are Reshaping the Global Business Landscape
Green Party Gains Momentum as Labour Shifts Toward the Political Centre
Royal Navy Destroyer HMS Dragon Sets Sail for Eastern Mediterranean as Regional Tensions Rise
UK Homebuilder Persimmon Warns Iran Conflict Could Dent Property Buyer Confidence
Roman Abramovich Signals Legal Fight if UK Seeks to Seize Chelsea Sale Funds
×