The Treasury select committee said there were still gaps in government support, and stressed assistance should be more "effectively targeted".

Its latest report on the economic impacts of the coronavirus crisis heeds travel’s calls for an extension to the furlough scheme.

Travel hasn’t been able to take advantage of the scheme in the same way other sectors have, with staff required to be working to carry out non-profit generating roles and other statutory requirements, such as processing refunds and rebooking clients.

With the furlough scheme due to end in October, many in travel are becoming increasingly concerned this will force the industry into wide-ranging redundancies.

More than 34,000 people have now signed a Parliament UK petition calling for the furlough scheme to be extended beyond October for the travel industry, with the sector preparing to move into the typically quieter autumn and winter low season.

The committee has made a series of new recommendations to government: "Effectively targeted assistance to those who need it is important," said the committee.

"The chancellor should carefully consider whether a targeted extension of the Coronavirus Job Retention Scheme (CJRS) and/or other targeted support measures might be required."

Members said many businesses, particularly SMEs, were not in a position to pay back government Covid support loans, adding it was concerned there may be "a significant lack of capacity and willingness" within the private sector to "step in and provide solutions for corporate indebtedness, especially among SMEs".

Mel Stride MP, chair of the Treasury committee, said: "The key will be assisting those businesses who, with additional support, can come through the crisis as sustainable enterprises, rather than focusing on those that will unfortunately just not be viable in the changed post-crisis economy.

"This requires a very difficult set of judgements; it is where careful analysis and creative thinking will be critical. As the committee has said throughout the crisis, the chancellor must continue to show flexibility in his approach."