THE Chancellor has ruled out extending the UK Government furlough scheme, saying it cannot “carry on indefinitely”.

During a visit to Scotland this morning, Rishi Sunak said it would be “wrong to keep people trapped” in a position with no realistic prospect of a return to that job.

The Scottish Government has called for the furlough scheme to be extended, warning Sunak that without further help he increases the risk of mass redundancies.

Around 10,0000 job losses have been announced in the last seven days alone, with redundancies at WH Smith, Pizza Express, Hays Travel, Dixons, Carphone Warehouse and many more workplaces.

READ MORE: Rishi Sunak urged to extend furlough scheme to avoid redundancies

SNP Westminster leader Ian Blackford had said to prevent job losses, particularly in Scotland’s tourism industry, the Chancellor could hold off on winding down the furlough scheme.

Sunak was asked on the BBC’s Good Morning Scotland programme why he would not extend measures to the sector which has been hit by particularly hard by the coronavirus pandemic.

He argued “most reasonable people” will agree the UK Government paying private firms’ wages is “not something that can carry on indefinitely”.

He told listeners: "It is wrong to keep people trapped in a situation and pretend there is always a job that they can go back to, that won't always be the case.

"In those situations it's better we look forward and provide those people with new opportunities."

Also on GMS today, Economy Secretary Fiona Hyslop repeated calls for more borrowing powers for Scotland to help respond to the Covid-19 crisis.

Sunak said the Scottish Government already has “significant” flexibility, but that Westminster would be “looking at revising and reviewing the fiscal framework over the next year or so”.

Sunak is the fourth Tory minister to visit Scotland today on what was called a “flying visit” by the SNP.