The government will support the wages of people in work giving businesses with depressed demand the ability to offer fewer hours. 

Sunak said the scheme will support "viable jobs". "Employees must work at least a third of their normal hours and be paid for that by their employers," he said. 

"Government and employers will then increase those wages, covering two thirds of the pay they have lost by reducing their working hours."

The support will be targeted "at firms that need it the most". All SMEs will be eligible but larger businesses only when their turnover has fallen during the crisis.

The scheme will be open to all businesses across the UK, even if they have not previously used the furlough scheme. 

It will run for six months from November. 

Employers can claim both the Job Support Scheme and the Job Retention Bonus.

The government is also extending the self employed grant on similar terms and conditions. 

The announcement was followed by one on cash flow support.