Furlough could return if tougher Covid restrictions are needed to tackle the Omicron variant, a Treasury source has said.

As the fast-spreading strain takes hold and people scramble to access vital booster jabs, it’s thought stricter measures could soon come into play.

If businesses have to close again, the government may need to bankroll people’s wages.

Last month, the government ruled out a return of the furlough scheme.

But a Treasury source has now told The Times: ‘If we do get to a position where we are telling businesses that they have to shut their doors then it is not unreasonable for them to expect additional government support.

‘That could mean a return to the furlough scheme but depending on what, if any, further restrictions are necessary there might be other ways of providing that support.’

Meanwhile senior Tory MP Damian Collins told the BBC: ‘If these are longer term restrictions then of course we would have to look at things like business support measures.’

The International Monetary Fund has also warned chancellor Rishi Sunak to get ready to bring back furlough if there is another lockdown this winter.

The Washington-based economic body said the authorities ‘should be ready to redeploy’ programmes ‘such as a furlough scheme and targeted support to the most vulnerable households and small businesses’.

It suggested a mini-furlough could be rolled out if companies have to close their doors.

As cases of Omicron soar, stricter curbs look ever more likely.

Scotland’s first minister Nicola Sturgeon has today outlined new guidelines on social contact, including asking for no more than three households to meet in social settings.

Health Secretary Sajid Javid insisted he was ‘not aware of any plans for further restrictions’.

He told MPs Omicron now represents 20% of cases in England and more than 44% of cases in London, where it is soon expected to become the dominant strain.

The Government has vowed to give every adult a booster jab in the next two weeks, although experts have warned this will put the NHS under huge pressure.

Prime Minister Boris Johnson said people needed to recognise ‘the sheer pace at which [Omicron] accelerates through the population’ – and warned they should put aside the idea that Omicron was a milder variant.

The Treasury has been contacted for comment.

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