Key points from Rishi Sunak's winter economy plan – at a glance

The chancellor is unveiling measures to protect jobs in the Covid crisis

• UK government to cover 22% of worker pay for six months
• What is Rishi Sunak's job support scheme and how will it work?
• Analysis: Sunak tries to stop job losses hitting postwar record

Sunak said the UK was in a fundamentally different position to where it was in March when coronavirus first spread.

The chancellor said millions of people had moved off furlough and back to work as the economy reopened, but the resurgence of the virus and measures needed in response posed a threat to a fragile economic recovery.

He said the economy was now likely to undergo a more permanent economic adjustment".

Sunak announced a new jobs support scheme" to subsidise the wages of people in work to replace the furlough scheme when it ends at the end of October.

Businesses will have the option of keeping employees in a job on shorter hours, rather than making them redundant.

Workers must work a third of their usual hours, paid by their employer as normal.

For the time they are not working, the government will pay a third of their usual pay, and the employer will pay a third of their usual pay.

Including the pay for the hours they are working, the Treasury says this means workers will get 77% of their usual pay.

The scheme will be targeted at businesses that need it most - all small and medium-sized firms - but only for big companies if turnover has fallen by a third.

The scheme will run for six months starting in November.

Firms can claim both the jobs support scheme and the jobs retention bonus.

A grant for self-employed workers will be extended on similar terms.

Sunak announced pay as you grow" to help companies repay state-backed business loans.

Loans can be extended from six to 10 years, almost halving repayments. Interest-only payments can be made, and firms in real trouble" can suspend their payouts.

All of the government's state-backed loan schemes will be extended until the end of 2020, and the government is starting work on a new guarantee loan programme to begin in January.

The chancellor will allow businesses to spread their VAT bills over 11 separate payments.

Sunak said on current plans VAT would increase from 5% to 20% on 13 January.

The cut had been made at the chancellor's summer economic update.

The chancellor said he was cancelling a planned increase in VAT, keeping a lower rate of VAT for hospitality and leisure firms until 31 March 2021.