LONDON- The number of jobs furloughed as of Aug. 31 could reach 3.7 million, Britain's tax office said on Thursday, highlighting that the arts and entertainment sector was making heaviest use of the scheme.

The tax authority said preliminary figures showed 3.3 million jobs were furloughed as of August 31, and that this could rise to 3.7 million once all data had been collected.

Use of the Coronavirus Job Retention Scheme has fallen from a peak of 8.9 million job on May 8.

(Reporting by David Milliken, writing by William James; editing by Sarah Young) ((william.james@thomsonreuters.com; +44 207 542 3374; Reuters Messaging: william.james.thomsonreuters.com@reuters.net))