A potential return to furlough and more state support for businesses is being considered if Boris Johnson orders further lockdown restrictions to tackle the Omicron variant.
The Times has been told Rishi Sunak will increase the Treasury’s business support package again if pubs, bars and restaurants are ordered to close.
Officials are understood to be working on a range of options.
A Treasury source told the newspaper it was not unreasonable for businesses to expect additional government support, which could include furlough or other means of help.
Covid relief measures still in place include business rates reductions for retail, hospitality and leisure businesses in England until March next year.
In addition, a VAT reduction for hospitality and tourism businesses means VAT of 12.5% is payable until March.