This is how many people have been furloughed in Blackpool, Fylde and Wyre

Unions and businesses said the financial support provided during the cornavirus pandemic has been a vital lifeline as new figures reveal the scale of its impact on local firms.

Data from HM Revenue and Customs show around 17,200 claims were made to furlough jobs in Blackpool by the end of May – roughly one in eight people living in the resort. A further 12,100 were furloughed in Wyre and 8,700 in Fylde.

Chancellor Rishi Sunak announced the Coronavirus Job Retention Scheme in March to support firms struggling with the impact of the virus.

It covers up to 80 per cent of an employee’s salary, capped at £2,500 a month per worker.

Across the North West, 828,900 jobs were furloughed by the end of May. The latest UK-wide figure stood at 8.9m as of June 7, amounting to £19.6bn in payments.

The hospitality sector has been particularly badly affected and figures for parliamentary constituencies show Blackpool South has seen one of the highest rates of furloughed employees in the country.

The support will run until the end of October, with flexible furloughing starting in July. It will allow workers to return on a part-time basis with the rest of their pay topped up by the Government.

Trades Union Congress general secretary Frances O’Grady said the furlough scheme has been a “vital lifeline” but added that jobs need to be protected as it is scaled back. She said: “That’s why the TUC is calling on government to set up a national recovery council with unions and employers.”

Matthew Fell, UK policy director at the Confederation of British Industry, said firms understood the programme needed to be wound up at some point.

He added: “However, previously viable firms not able to open until later, particularly in leisure, hospitality and the creative industries, may need further assistance in the coming months.”

Separate figures show around 5,200 people in Blackpool applied to the Self-employment Income Support Scheme, which allows the self-emplyed to recover some of their lost earnings, by the end of May.

Mr Sunak said: “Our unprecedented coronavirus support schemes are protecting millions of vital jobs and businesses across the whole of the UK – and will help ensure we recover from this outbreak as swiftly as possible.

“We have extended both schemes so they will continue to provide measured support across the UK as we start to reopen the economy.”