The furlough schemed will be extended until the end of April 2021, Chancellor Rishi Sunak has announced.

The furlough scheme will see the government continue to contribute 80% towards wages into the new year.

The Chancellor announced the news on Twitter as well as the extensions to the Coronavirus Business Interruption Loan Scheme, the Coronavirus Large Business Interruption Loan Scheme, the Bounce Back Loan Scheme and Future Fund until March 30th.

These changes come ahead of the budget which the Chancellor has confirmed will take place on March 3, 2021.

The government will offer further support to business heading into 2021 amid the coronavirus pandemic and the end of the Brexit transition period.

Rishi Sunak said: “Our package of support for businesses and workers continues to be one of the most generous and effective in the world – helping our economy to recover and protecting livelihoods across the country.

“We know the premium businesses place on certainty, so it is right that we enable businesses to plan ahead regardless of the path the virus takes, which is why we’re providing certainty and clarity by extending this support, as well as implementing our Plan for Jobs.”

Business Secretary, Alok Sharma said the added support will provide a “vital lifeline” to business’ across the country.

He said: “While our loan schemes have provided a vital lifeline to millions of firms across the country, we know that business owners need additional certainty as we head into the New Year.

“Extending government-backed loan schemes will give companies right across the UK the finance they need to support, protect and create jobs as we build back better from the pandemic.”

The government has already announced further support will be available to firms beyond March although further details are yet to be announced.