The furlough scheme cannot go on “indefinitely” warned Chancellor Rishi Sunak during a visit to Scotland as millions of workers fear for their jobs when the support ends.

Ms Sunak was visiting a factory in Inchannan, in Renfrewshire and then visited the island of Bute, taking the CalMac ferry from Wemyss Bay.

He has faced calls to extend the scheme that has already cost more than £30bn paying wages of almost 10 million workers across the UK.

But he said that there will be job losses and warned of “hardship ahead for many people”.

Mr Sunak said: “I don’t think it’s fair to extend this indefinitely, it’s not fair to the people on it. We shouldn’t pretend there is in every case a job to go back to.

“In those situations it’s better we look forward and provide those people with new opportunities.”

The Chancellor said support has been provided though the crisis but said the Government was moving into a new phase after the furlough scheme ends in October.

He said 65,000 businesses in Scotland have benefitted from more than £2bn of loan support and he said we should be looking to provide people with new opportunities.

He said: “It was fantastic to be in Scotland today visiting Scottish businesses and hearing how they have persevered through this crisis.

“The UK Government has provided vital assistance to the Scottish Government during this time, protecting jobs and supporting businesses.

“Now as we move into the next phase of our response to this crisis, Scotland will play an integral part in our economic recovery. Scotland is a power brand when it comes to UK tourism and that’s why we have put into action our Plan for Jobs to further support sectors like this.”

Opposition leaders said that without some continued support many businesses will not survive and there will be huge job losses.

Ian Blackford,SNP Westminster leader, said: “Cutting the furlough scheme prematurely is a grave mistake.

“By removing this crucial support in the middle of a global pandemic, and withholding the financial powers Scotland needs for a strong recovery, the Tories are increasing the risk of mass redundancies.”

While Labour leader, Keir Starmer, warned of a “jobs crisis on a scale not seen for generations”.