Rishi Sunak has this afternoon announced to the House of Commons that the furlough scheme will be extended until March.
Speaking in the Commons, he said: “The government’s intentions is for the new health restrictions to remain only until the start of December.
“But as we saw from the first lockdown, the economic effects are much longer lasting for businesses and areas that the duration of any restrictions.
“And as the Bank of England have said this morning, the economic recovery has slowed and the economic risks are skewed to the downside.
“Due to this significant uncertainty, a worsening economic backdrop and the need to give people and businesses security throughout the winter, I believe it is right to go further.”
The government will continue to help cover employee’s wages up to 80% until March.
Mr Sunak also went on to say that the furlough extension would be reviewed in January to see if employers would be needed to contribute more.
