Omicron threat | Sunak urged to launch 'mini-furlough' if COVID hits economy again

The UK should be ready to reintroduce a temporary furlough scheme if the Omicron COVID variant threatens to shut down parts of the economy, the International Monetary Fund has suggested.

As reported by several outlets, the IMF has called on Chancellor Rishi Sunak to draw up plans for a ‘mini-furlough’ of sorts, amid concerns about the rapidly rising number of Covid cases this winter, particularly the new Omicron strain.

As part of the IMF’s annual review of the UK’s economy, the institution warned the fast-spreading COVID variant posed a fresh threat to the economy, according to The Guardian.

The report said: “In the event of a virulent COVID-19 wave requiring widespread mandated closures, the authorities should be ready to redeploy a subset of the most successful previous exceptional programmes (such as a furlough scheme and targeted support to the most vulnerable households and small businesses), but with due attention to lessons learned about their design (including tapering and timely sunset).”