WATCH: Furlough scheme contributions a “step too far” for businesses, says Labour

Lucy Powell has warned that changes to the furlough scheme in August requiring contributions from employers will be a “step too far” for many businesses across the country.

In an interview with BBC Breakfast this morning, the shadow business minister said that there would be “many more thousands of job losses” if the furlough scheme is not extended.

The Labour MP argued for “more flexibility and an extension” to the government support programme, describing it as the “very best way to ensure the public finances”.

Asked if Labour wants an increase in taxes or a wealth tax to pay for its extension, she said: “Well we’re not talking about those things – we’re talking about how we can protect the public finances by protecting jobs and businesses today.”

Shadow Chancellor Anneliese Dodds advised last week that the government should consider using wealth taxes to fund the UK’s recovery, and said that Labour is against “generalised tax rises across the whole of the population”.

Chancellor Rishi Sunak is due to give a ‘summer economic update’ outlining the government’s plans to support the economy in a statement to the Commons on Wednesday.