Chancellor of the exchequer Rishi Sunak has announced an extension of the furlough scheme until the end of March as the Covid-19 coronavirus shows little alternative to lockdown to contain the spread. 
Sunak (pictured) said the UK government will cover 80 per cent of wages with employers only liable for National Insurance and pension contributions.
“It’s clear the economic effects are much longer lasting for businesses than the duration of any restrictions, which is why we have decided to go further with our support,” said Sunak.
“Extending furlough and increasing our support for the self-employed will protect millions of jobs and give people and businesses the certainty they need over what will be a difficult winter.
In addition, those who are self-employed will now receive 80 per cent of average trading profits for November, December and January, through its Self-Employment Income Support Scheme.
Ambrose Crofton, global market strategist at JP Morgan Asset Management, said: “Today’s announcements from the chancellor and Bank of England are vital steps to shelter the UK economy through a difficult winter.
"The extension of the furlough scheme will help provide a much needed bridge for households and businesses until the economy can reopen.
"The Bank this morning signalled they would fully support the government’s economic plan by announcing additional asset purchases that will enable the government and businesses to finance themselves at favourable rates. However, the risk remains that for many businesses, faced with the uncertainty of how long this crisis may last, they may decide to make lasting decisions to either cut jobs or cease trading.”