Chancellor Rishi Sunak has announced that workers at businesses that are forced to close due to stricter lockdown measures will have two-thirds of their wages paid by the government, as speculations grows that the hospitality sector may be forced to completely close in areas of Northern England next week.

The government will pay employees who cannot work 67% of their salaries, up to £2,100 a month.

The scheme will come into force on 1 November and run for six months before being reviewed. Employees must be off work for a minimum of seven days to be eligible.

The Chancellor 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 new rules that are expected to be announced next week are likely to see pubs, cafes and restaurants shut down in the worst-hit places, similar to what has happened in Scotland.