CREWE and Nantwich MP Kieran Mullan says it is right the government calls time on the furlough scheme as the country needs to refocus on creating "new sustainable jobs".

Concerns have been raised that the ending of the Coronavirus Job Retention (Furlough) Scheme at the end of next month will lead to employers laying off large numbers of workers.

The scheme supported firms by paying 80 per cent of the wages of furloughed staff when it was launched after lockdown was imposed.

But employers have gradually had to contribute more and this month they have to fork out for 10 per cent of staff wages, rising to 20 per cent in October before the scheme closes.

The Chancellor, Rishi Sunak, is reported to be looking at plans to replace the furlough scheme with German-style wage subsidies if businesses are hit hard by a second wave of Covid-19.

Locally, the MP says he worked with local partners to organise the Crewe and Nantwich Virtual Jobs Fair, which saw local firms offer hundreds of vacancies "from minimum wage to six figure salaries" during August.

He said: "I do not believe that carrying on with wholesale furlough is the right approach as it locks people in jobs that may not be sustainable. We need to focus on finding people new sustainable jobs.

"I do not want anyone to lose their job when the CJRS scheme ends, however it is a very sad reality that we aren't in a position to save every single job. For the first time government debt has hit £2 trillion. The tax payer cannot carry on paying peoples wages to that extent.

"The independent Governor of the Bank of England, Andrew Bailey, has supported ending the CJRS scheme.

"While this scheme is ending others are starting for example the 'Kick Start Scheme' to get young people into jobs, as they are at the greatest risk of long-term damage to their employment prospects, and payments to employers for retaining furloughed workers.

"These are exceptionally challenging times but we must remember that the government have not ruled out introducing additional measures to protect jobs as the pandemic develops. I will continue to raise the concerns of my Crewe and Nantwich constituents with the government."

A scheme similar to the German Kurzarbeit (short work) system could be among the additional measures the government is considering after talks with businesses and unions in recent weeks.

That would see the state paying wages for a reduced-hours working pattern.

A spokesman for Crewe and Nantwich Labour Party says "job security" should be the priority.

"Crewe and Nantwich residents need job security now, not speculation with no substance about new jobs from a government with a record of driving down wages and increasing insecurity in the workplace through zero hour contracts and outsourcing," he said.