Economics
Bank of England Chief Economist Warns Against Extending Furlough Program
- Haldane says extending furlough would delay needed adjustment
- Companies may need help managing debt as BCC raises concerns
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The Bank of England’s chief economist has thrown his weight behind the government’s controversial plan to let its wage-support program end, saying that prolonging it could delay the economy’s much-needed restructuring.
Calls have been mounting for the subsidies to be extended beyond next month, but Andy Haldane said a better way might be to let pay levels and working hours adjust to the market. At the same time he signaled that companies may need help managing the debt burdens they’ve built up during the pandemic.