The number of Shropshire workers on furlough dropped in May as the scheme begins to wind down.

The latest figures from HM Revenue and Customs show that 9,800 jobs held by workers living in the county were furloughed.

That was 4,700 fewer than the 14,500 furloughed at the end of April.

The reduction in furlough numbers coincided with an easing of restrictions which led to the reopening of indoor entertainment and hospitality, along with holiday accommodation.

The figures show that in May in Shropshire furloughed jobs in the retail sector dropped by 1,170, to 1,420, while in the arts, entertainment and recreation sectors, 300 fewer jobs were supported by the scheme, with 400 still furloughed.

And the number of hospitality jobs furloughed fell by 1,450, to 2,570.

As of July 1, employers must pay 10 per cent of the salary for furloughed staff, rising to 20 per cent in August and September, when the support scheme ends.

But there are fears many businesses will not be able to afford the cost with parts of the economy still restricted by Covid measures.

Labour's shadow chief secretary to the Treasury, Bridget Phillipson, said: "The government must make sure economic measures go hand in hand with public health measures and that our British businesses and high streets are not left out in the cold.”

Meanwhile, British Chambers of Commerce director general Shevaun Haviland, said: “The taper of government payments into the furlough scheme should be immediately deferred until we take the final step in the road map, and further grant support should be extended to the worst affected businesses.”

Across the border in Wrexham the number of workers on furlough in May also dropped to 3,600.

That was 2,600 fewer than the 6,200 furloughed at the end of April.

The figures show that in May in Wrexham furloughed jobs in the retail sector dropped by 510, to 450, while in the arts, entertainment and recreation sectors, 160 fewer jobs were supported by the scheme, with 240 still furloughed.

The number of hospitality jobs furloughed fell by 730, to 870.

Across the UK, the total number of jobs furloughed fell by 1.2 million during May to 2.4 million at the end of the month.

The furlough scheme, formally called the Coronavirus Job Retention Scheme, started with the government paying 80 per cent of a worker’s wages, up to £2,500 per month, if they were not able to work due to the impact of the pandemic.

Employers could choose whether to make up the rest of staff salaries.

The reduction in government support to 70 per cent with firms now required to pay 10 per cent of furloughed staff salaries will cost businesses £322 in July to keep an employee earning £20,000 a year on the books, according to the Institute of Fiscal Studies.

That could be too much for some businesses, say politicians and business groups.

The government has spent £66 billion on the furlough scheme since it started in March last year.

A spokesperson said: "We deliberately went along with our support to provide certainty to people and businesses over the summer, and that support, which is a substantial amount of funding, is continuing."

They added additional support was being given to businesses through grants, business rates relief and a cut in VAT.

Separate HMRC figures show 15,600 self-employed workers in Shropshire have received government cash since the self-employment income support scheme started. The total value of the claims made across the area stood at £131.1 million by June 6.