The chancellor is set to use his Budget today to extend furlough until the end of September.

Pundits had not anticipated such a lengthening of the support scheme, instead putting emphasis on the prospects for revenue generating moves such as a small increase in corporation tax rates.

There had been hints that the scheme could be extended beyond April, perhaps to June, but in a sign that that the forecasts for the economy could be bleaker than initially expected when they are announced later today, the government commitment to field 80 per cent of workers’ salaries will last well beyond the point when all coronavirus restrictions are due to be lifted.

Sunak has repeatedly flagged that he was still willing to spend in today’s statement. Despite the government borrowing a record £270bn to boost the economy during the Covid 19 pandemic, the chancellor said last week that he was “preparing a Budget that provides support for people”, and that he would do “whatever it takes” to support the economy and jobs while unemployment is at a five-year high and a reported 4 million employees remain on the furlough scheme.

There will be a slight change to the mechanics of the scheme however, as July will see employers field 10 per cent of a furloughed workers wages, before that figure moves up to 20 per cent for the following two months.

Meanwhile, Sunak is also set to cast the support net wider, to bring state financial help to around 600,000 people who are newly self-employed.

After facing criticism that the government’s support schemes for self-employed workers during the coronavirus crisis allowed too many people to slip through the cracks, Sunak has confirmed that those who became self-employed during the 2019/20 tax year will be entitled to the self-employment income support scheme’s cash grants.

Qualification issues for the scheme had arisen because the most recent data available was the previous years’ tax returns, so the scheme was based on those.

“Our Covid support schemes have been a lifeline to millions, protecting jobs and incomes across the UK,” Sunak said in a statement released last night.

“There’s now light at the end of the tunnel with a roadmap for reopening, so it’s only right that we continue to help business and individuals through the challenging months ahead – and beyond.”