FIFE MSP Alex Rowley has written to the Chancellor of the Exchequer calling for an extension to the furlough scheme on a sector by sector basis in order to save jobs and the economy.

The Labour MSP warned in his letter that if the furlough scheme comes to a cliff-edge end in October that all the good work of the scheme will be lost as the economy spirals downwards.

The UK has entered the deepest recession since records began with the economy shrinking by more than any other major nation during the coronavirus outbreak in the three months to June. GDP has fallen a staggering 20.4% - the worst of any G7 nation.

Almost 10 million workers who are unable to do their job because of the coronavirus outbreak have had their wages paid by the UK Government. But with the scheme coming to an end in October, there are concerns being raised as to the impact of a sudden stop.

Mr Rowley said to the Chancellor, Rishi Sunak, in his letter: “If the jobs retention scheme simply ends during this period of unparalleled recession then our economy risks a collapse on an unimaginable scale.

“We desperately need a sector by sector approach for tackling the incredible and exceptional difficulties we are facing as a country.

“The country cannot face potential mass redundancies in the middle of the deepest recession on record. This will only compound the demanding economic difficulties we are facing.

“It is inevitable that some sectors will struggle more than others, but that is why a targeted and tailored approach to extending furlough is essential.”