BUSINESSES which are closed by law after October will not be eligible for the furlough scheme.

A Downing Street spokesman confirmed that the job-saving scheme is still set to be wound up by the end of October, despite mounting pressure to introduce a sector-specific plan.

Labour and the SNP have both called for the Chancellor to extend the scheme to some areas, in particular those subject to local lockdowns and industries which have been worst hit by the pandemic.

This includes manufacturing, retail and aviation.

Today the Night Time Industries Association said a return for clubs and venues is possible if numbers inside are limited, social distancing takes place and clubbers wear face masks.

Their report stated: "Use of face coverings on the dancefloor can be implemented and enforced through existing security staff and protocols.”

It also warned 60% of businesses in the sector could be closed by next month without more support. as the sector reaches a "critical point".

Michael Kill, chief executive of the association, said: "We have now reached a critical point. In the absence of a clear reopening strategy from government, or the promise of financial support, huge numbers of businesses within our industry are facing financial collapse and thousands of job losses.

"The report clearly shows that there is a case for the safe reopening of night-time leisure venues, including nightclubs, late night bars, live music venues and event spaces.

"Whilst many of these are large capacity venues, it is important to note that they already have many of the safety protocols in place to mitigate the spread of Covid-19.

"We implore the government to give us the opportunity to reopen in a safe, risk-assessed way."

Last week Donald Macleod, who owns Glasgow's Garage and Cathouse nightclubs, spoke of his fears of job losses and industry demise if more support was not given by the Scottish Government to help the night time economy.

He said the furlough scheme alone was not enough to sustain the sector, and urged officials to step in.

However Rishi Sunak has insisted it is unfair to continue the furlough scheme and give workers false hope about employment opportunities once it comes to an end.

When asked if firms which are required to close by law would be able to use the furlough scheme after October 31st, a Downing street spokesman said: ""The chancellor has been clear when the furlough scheme comes to an end, but as I say we have provided support for businesses which they are able to use, and obviously we will continue to keep that under review.

"The treasury and the chancellor have set out support packages which ensure llots of these sorts of high risk areas will have received. We will keep it under continuous review but the chancellor has set out the support packages available to businesses."