Chancellor Rishi Sunak has confirmed the next Budget will take place on 3 March 2021, as he outlined plans to extend the furlough scheme by an extra month until the end of April.

He said the move will provide “certainty for millions of jobs and businesses”. It means the government will continue to pay up to 80 per cent of the wages of workers who have been furloughed.

Sunak also confirmed he would be extending the government-guaranteed Covid-19 business loan schemes until the end of March next year.

The Budget is expected to deliver “the next phase of the plan to tackle the virus and protect jobs”.

Sunak says: “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.”

Businesses will also be given until the end of March to access the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme, and the Coronavirus Large Business Interruption Loan Scheme. These had been due to close at the end of January.