Businesses forced to close will will get targeted furlough scheme

Employees who work for UK firms forced to shut by law because of coronavirus restrictions are to get two-thirds of their wages paid for by the government.

The scheme will begin on 1 November and run for six months, Chancellor Rishi Sunak said it would be a safety net for staff and businesses.

A restrictions update, which could see pubs and restaurants shut in the worst-affected areas, is expected on Monday.

Shadow chancellor Anneliese Dodds said Mr Sunak’s “delay in delivering support has caused unnecessary anxiety and job losses”.

Regional leaders have called for more help for struggling firms.

But the scheme will only apply to businesses told to close – rather than those who choose to shut because of the impact of Covid restrictions.

The support will be reviewed in January. Until November businesses that are asked to close can continue to use the furlough scheme.

The grants will be paid up to a maximum of £2,100 per employee a month and the Treasury said they would protect jobs and enable businesses to reopen quickly once restrictions are lifted.