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British Chancellor Rishi Sunak has set out an extension to wage subsidies for employees of businesses that have been forced to close down under new COVID-19 restrictions.
The government will cover two-thirds of workers' wages for companies legally obliged to shut for a period of time over winter as part of local or national COVID-19 restrictions.
The scheme will see the government cover 67 percent of employees' salaries and will begin on November 1. It will be available for a period of six months and will be capped to a maximum of £2,100 ($2,726) a month.
Sunak said: "Throughout the crisis the driving force of our economic policy has not changed. I have always said that we will do whatever is necessary to protect jobs and livelihoods as the situation evolves.
"The expansion of the Job Support Scheme will provide a safety net for businesses across the U.K. who are required to temporarily close their doors, giving them the right support at the right time."
The government's furlough scheme, which saw it pay businesses cash grants of 80 percent of the wages of furloughed workers, up to a maximum of £2,500 ($3,247) per month, will end on October 31. It was credited with preventing a sharp rise in unemployment as businesses were ordered to shut during the nationwide lockdown.
It comes as COVID-19 cases continue to rise in the north of England, with Liverpool, Warrington, Hartlepool and Middlesbrough, placed under greater restrictions.
There are fears that the government could be considering tougher restrictions in a bid to stop the speed of the virus, leading to condemnation by city mayors who have criticized the government for failing to consult with them.
Greater Manchester mayor Andy Burnham tweeted: "No discussion. No consultation.
"Millions of lives affected by Whitehall diktat.
"It is proving impossible to deal with this Government."
The leaders of Birmingham City Council have written to Sunak warning that further restrictions on bars and restaurants, without evidence of a spread of COVID-19 taking place in those settings, risked costing jobs and livelihoods without making anyone safer.
The latest figures show that the British economy grew by only 2.1 percent in the month of August, well below expectations, despite the Eat Out to Help Out initiative Sunak hoped would provide a much-needed boost to the economy.
However, the economy grew for the fourth consecutive month after contracting by a record 20.4 percent in the three months to June following the imposition of a nationwide lockdown to stop the spread of COVID-19 in March.
The latest figures were also a major slowdown from the month of July, when the economy grew by 6.4 percent.
