Britain faces being hit by huge 700,000 job losses as furlough ends

BRITAIN faces being hit by a huge 700,000 job losses after furlough ended yesterday, experts warned.

But in a boost for the Treasury, figures showed the economy roared back more strongly than had been predicted — while job vacancies are at a record high of a million.

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Around a million workers were still on furlough when the scheme ended yesterday.

And the New Economics Foundation warned 700,000 of these jobs are now at risk.

UK Plc grew by 5.5 per cent between April and June this year — up from original estimates of 4.8 per cent.

But panicked Tories fear the end of Covid bailouts and rising energy prices will cause a “perfect storm” of economic gloom this winter.

Along with the end of furlough, Universal Credit is being cut by £20 a week and VAT is going up from five per cent to 12.5. Chancellor Rishi Sunak pledged £500million to help struggling families with food, clothes and energy bills.

He said the Household Support Fund, “will provide a lifeline for those at risk of struggling to keep up with their bills over the winter”.

But MPs warned Britain is hurtling towards “disaster” unless more is done to get cash into people’s pockets.

Ex-Tory leader Iain Duncan Smith urged ministers to delay plans to slash UC.

He said: “The Government has to work out how to avoid a perfect storm hitting the country this Christmas.

“Universal Credit should be continued until next year.”

Another senior Tory backbencher said: “The Chancellor should look at tax cuts for the lower paid.”