RISHI Sunak has refused to extend the furlough scheme despite desperate pleas from businesses, it is claimed.
The Chancellor will continue to wind down wage support from next month - even though Boris Johnson is set to delay Britain's June 21 'freedom day'.
🔵 Read our coronavirus live blog for the latest updates
The coronavirus job support scheme will continue to cover a portion of people's salaries until September - three months after all Brits were told the pandemic would be over.
But the Government will stop covering 80 per cent of wages for those not at work from next month as employers are forced to start chipping in.
Mr Sunak said businesses will have to contribute 10 per cent of the cost from July, increasing to 20 per cent in August and September as the economy hopefully reopens.
Businesses yesterday urged the Chancellor to delay the withdrawal of funds if lockdown is extended beyond June 21 - a decision due to be announced on Monday.
And hospitality chiefs warned up to 200,000 could be a risk if a decision reversal wasn't made.
But sources close to Mr Sunak insisted the timetable for gradually phasing out furlough - which was due to finish in April - would remain the same, the Daily Mail reports.
One argued an extension until September was enough to cover any delay to Britain's unlocking and that the Treasury had already "gone long".
Mr Sunak is also resisting calls to extend the business rates holiday that is also due to start being withdrawn at the end of the month.
Relief for retail, hospitality and leisure facilities will drop from 100 per cent to 66 per cent from July 1 and remain in place until the end of March next year.
But the industry has urged Mr Sunak to reconsider his plans and keep the full relief in place until the start of October.
Trade body UKHospitality chief executive Kate Nicholls said: "We recognise that the Chancellor has provided long-term support for the sector which extends into the recovery period, but there is no doubt that any extension to the restrictions will be challenging for sectors yet to open and those still trading at a loss to navigate."
She added: "Among other measures, the Government must postpone business rates payments until at least October and extend the rent moratorium while a long-term solution is found.
"Businesses need a swift, publicly-stated commitment that such support will be in place in the event of any delays, giving them much-needed reassurance after more than 15 months of closure and severely disrupted trading.
"Hospitality is desperate to get back to what it does best and can play a key role in the economic recovery of the UK – but only if it is given the proper support."
Furlough has protected more than 11million jobs since its creation in March 2020 at a cost of £64billion.
Despite a reduction in Government input, Mr Sunak has promised further help in the “challenging months ahead — and beyond”.
GRIM FEARMaddie 'was killed hours after vanishing & body will be found in Portugal woods'
DOC BLOCK COMPOWorker wins £40k after boss blocked hospital appointments when pregnant
ROYAL WELCOMEBiden says the Queen ‘reminds me of my mother’ after royal reception
RECORD BAKERHeatwave to last three more days before thunderstorms and 50mph gales hit
DOG TRAPPEDCops rescue beagle from car in 24C heat as owner moans ‘you’ve broke my window’
JAB BEATER FEARSThird of patients who died after catching Indian variant had BOTH jabs
Employees taking part will continue to receive 80 per cent of their salary — up to a maximum £2,500 a month — for hours not worked until the scheme ends.
As of the end of April 2021 - the most recent figures available - 3.4million people were receiving furlough support.
But this number was 900,000 lower than the previous month.