Chancellor Rishi Sunak is to announce that the government will extend its furlough scheme until the end of September.
Employees will continue to receive 80 per cent of their salary for three months after the government plans to remove all Coronavirus-related restrictions, currently set for 21 June.
Labour said that the scheme should have been extended months earlier instead of letting struggling companies suffer in uncertainty.
Ahead of the upcoming 2021 budget, Rishi Sunak also pledged £5 billion to help the High Street and hospitality recover from the pandemic.
“Our Covid support schemes have been a lifeline to millions, protecting jobs and incomes across the UK,” said the chancellor on Tuesday night. “There’s now light at the end of the tunnel with a roadmap for reopening, so it’s only right that we continue to help business and individuals through the challenging months ahead – and beyond.”
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