CHANCELLOR Rishi Sunak has set out his plan to support jobs businesses as the furlough scheme winds up.

He told MPs he "cannot save every job - no Chancellor could", and said the economic damage to the UK from the pandemic will be deeper than previously thought. 

He has announced a new jobs support scheme giving firms the chance to reduce staff working hours by 66%, paying them a third of their salary for the time they're not working. 

READ MORE: What Rishi Sunak announced today and how it affects you

Firms would pay staff one third of their wages and for the time they are working. The government would pay the additional third. 

He has also announced an extension to the Self-Employment Income Support Scheme, paying 20% of traders' average monthly profits via a government grant, up to a total of £1,875. It will be for people continuing to actively trade but face reduced demand due to coronavirus. The initial lump sum will cover three months’ worth of profits for the period from November to the end of January next year.

A tax cut of 15% for the hospitality and tourism sectors has been maintained, meaning these firms will only have to pay 5% VAT until March 31, 2021. 

Labour shadow chancellor Anneliese Dodds welcomed the measures, but criticised the government for failing to announc measures for training. 

She said: "While we welcome many of the elements the Chancellor has announced today, the lack of action on training and skills is worrying.

"The government has already allocated £3billion for a National Skills Strategy- but it’s not being delivered on the ground. So will the Chancellor work with businesses, trade unions, further and higher education and local authorities to get the training opportunities in place our country needs, so people can be ready for the jobs of the future?" 

READ MORE: Sunak accused of 'disrespect' after Kate Forbes learns budget scrapped on Twitter

Mr Sunak said: “The resurgence of the virus, and the measures we need to take in response, pose a threat to our fragile economic recovery…

“Our approach to the next phase of support must be different to that which came before.

"The primary goal of our economic policy remains unchanged - to support people’s jobs - but the way we achieve that must evolve.”