In another blow to the performing arts industry, New York's famed Metropolitan Opera announced on Wednesday that the house will remain closed until at least September 2021.

In a news release, external, the Met said it made the decision to cancel the rest of the 2020-21 season "based on the advice of health officials".

The risk of virus transmission was too high given the "hundreds of performers who are required to rehearse and perform in close quarters” and “the company’s large audience", it said.

Health officials told the Met it would not be safe to resume "until a vaccine is widely in use, herd immunity is established, and the wearing of masks and social distancing is no longer a medical requirement".

A report by US think tank the Brookings Institution, external estimated losses of 2.7 million jobs and more than $150bn (£117bn) in sales of goods and services for creative industries in the US.

The performing arts, the report said, had been “disproportionately affected” by the coronavirus pandemic.

Image source, Reuters

A US airline is to become the first in the world to offer rapid coronavirus testing to passengers.

Travellers flying with United Airlines from San Francisco to Hawaii from 15 October will be able to take a test that offers results within 15 minutes. Alternatively, they can opt to receive a test via post that they will need to return within 72 hours of flying.

The airline said that Hawaiian officials had agreed that any passenger who tested negative on either test would be exempt from the state's 14-day quarantine period.

Earlier this week, a body representing the aviation industry called for rapid testing to encourage people to start flying again.

"This will give governments the confidence to open their borders without complicated risk models that see constant changes in the rules imposed on travel," the head of the International Air Transport Association said on Tuesday, noting that air travel has been down 92% on last year's figures.

Image source, Reuters

President Donald Trump has cast doubt on the approval of stricter guidelines for authorising the use of coronavirus vaccines in the US.

He suggested the US Food and Drug Administration’s (FDA) reported effort to revise the vaccine guidelines was "a political move more than anything else".

"That has to be approved by the White House. We may or may not approve it,” Trump said during a media briefing on Wednesday.

Trump has repeatedly promised that a US-made vaccine against Covid-19 could be ready for use before November's presidential election.

US media reports, external say the stricter FDA standards are being reviewed by the White House. If approved, it is unlikely that a vaccine would be available before the election.

Trump's suggestions of a ready-to-use vaccine before the end of 2020 have been contradicted by health officials and experts, who believe that timeline is too optimistic.

The head of the FDA, Stephen Hahn, has sought to reassure Americans that any Covid-19 vaccine will be safe and effective.

Image source, Getty Images

People are waiting longer for test results from England's community Covid testing centres, figures show.

Only 28% of tests carried out in these centres came back in 24 hours in the week up to 16 September.

That is down from one in three last week, and two in three the week before, NHS Test and Trace said.

Just over 5% of tests took more than three days to turn around.

It comes as the government struggles to increase lab capacity to process tests.

There are three types of community testing centres - drive-throughs, walk-ins and mobile units.

Read more.

• Workers must do at least a third of their normal hours
• The government and the employer will pay a third each of the lost hours
• It means someone working a third of their hours would receive 77% of their pay
• The scheme begins in November, and replaces the "furlough" scheme
• It means the government will pay a mximum 22% of someone's wages, down from 80% at the start of the furlough policy

Image source, HM Treasury

The Adam Smith Institute said the chancellor's statement was "sensible" but not costless.

Matthew Lesh, head of research at the free market think tank, said: "It makes sense to replace the furlough scheme - that paid people to not work - with a wage subsidy scheme that helps struggling but viable businesses to keep employees on the job part time.

"Extending loan schemes and VAT cuts is also a measured response to lessen the shock as the government furlough scheme is rolled back.

“This is not costless. The government must resist becoming addicted to spending. Temporary spending is sensible to keep struggling businesses afloat, but in the longer run we are going to have to get the national accounts in order by reducing ongoing spending."

Dharshini David
Economics Correspondent

The furlough scheme was a bridge to carry livelihoods through the crisis. But the bridge needs to reach the other side of the gap to be effective.

The chancellor’s wage subsidy scheme is a continuation of that support - but it’s of a different, less generous type.

As employers will have to pay a more substantial part of wages than before, and employees will have to be working, it’s aimed only at those businesses and posts that are viable.

So some workers will slip through the gap: the government is keen that those in unsustainable jobs are spurred to think about their next move.

And that means unemployment will still rise - although not as far perhaps as the four million some economists previously feared. The cost of the chancellor’s new plan will run into billions, adding to the shortfall of £320bn the Treasury is already facing.

At some point, taxes may have to rise to help plug that - but there was no mention of that today, for it may be some time before the economy will be strong enough to take that on.

But the bill facing the chancellor now is likely to be far smaller than the ultimate cost to the economy of doing nothing.

A business group has praised the chancellor for listening to employers and unions and "acting decisively".

Dame Carolyn Fairbairn, director general of the CBI, said: "These bold steps from the Treasury will save hundreds of thousands of viable jobs this winter."

Manufacturers organisation Make UK said Rishi Sunak deserved credit for reflecting on the experience of other countries and implementing similar measures, with the Job Support Scheme having been compared to similar programmes in France and Germany.

Chief executive Stephen Phipson said it would make the UK "strongly competitive" when normal conditions returned.

Anneliese Dodds, the shadow chancellor, expressed "relief" at what she called the government's "U-turn"...

Kevin Peachey
Personal finance correspondent

The chancellor's announcement concentrated primarily on protecting jobs and, therefore, people's wages.

While many will be relieved their income has more certainty, the question over how to pay household bills needs an immediate answer.

The largest bill is often home loan repayments, and government-backed mortgage holidays come to an end at the end of October.

Instead, people will be considered on a case-by-case basis and the financially vulnerable may still be given deferrals by lenders.

However, unlike now, this will be marked on their credit report - potentially affecting their ability to borrow in the future.

Reality Check

In his statement, Chancellor Rishi Sunak said: "While our output remains well below where it was in February, we have seen three consecutive months of growth."

He is right – the Office for National Statistics (ONS) announced earlier this month: "Gross domestic product grew by 6.6% in July 2020, the third consecutive monthly increase, but it has still only recovered just over half of the lost output caused by the coronavirus."

What has happened is well illustrated by this ONS graph.

The maths in the new Job Support Scheme are not especially easy to grasp.

So a helpful way to think about it is the overall percentage of a person’s salary that the government can end up paying for.

For someone who works a third of their standard hours, the government’s contribution would be two-ninths - or approximately 22% (compared with 80% at the beginning of the furlough).

The employer would pay the first third, like normal, and another two-ninths on top. The employee would get nearly 78% of their salary.

The 22% government contribution is a maximum. For someone working 50% of hours, the government contribution is 17%. It’s a sliding scale.

The scheme for self-employed people will also be less generous than previously. It will now be worth 20% of earnings (compared to 80% at the beginning).

So in terms of what the government contributes the two schemes are roughly level.

The policy, to begin in November, means the government will top up the wages of workers on reduced hours...

Image source, PA Media

Prime Minister Boris Johnson was not in the Commons during the chancellor's statement, as he was visiting police recruits in Northamptonshire.

Speaking there, Mr Johnson said the government was "continuing to do everything we can to support the work force, jobs and livelihoods throughout the crisis".

"But the really important thing is everybody follows the guidance that we set out," Mr Johnson added.

"That's why I'm here today in Northamptonshire talking to the police about what they're doing to underpin, to support the enforcement of those rules.

"It's absolutely vital that everybody does that.

"I know that people think it's a great package of new rules to press the virus but will it be enforced?

"And my message is - yes it will be, and there will be serious fines for people who don't comply."

Kevin Peachey
Personal finance correspondent

Extra support has been announced to allow people to delay their income tax bill - but it will still need to be paid.

Millions of self-employed people or those who have more than one source of income have to complete a self-assessment tax form every year.

The chancellor said that those with tax debt of up to £30,000 will be able to go online, if they are finding it difficult to pay, to set up a payment plan over 12 months to January 2022.

That will help people with immediate financial problems, but they will still need to find the money eventually.

Those with debts of more than £30,000 need to get through to HM Revenue and Customs on the phone to set up the plan. In the past, that has been a frustrating experience for many people.

Unions have accused Chancellor Rishi Sunak of using a plaster to cover a "gaping wound" while jobs have already been lost.

Mark Serwotka, general secretary of the Public and Commercial Services union, said the furlough scheme should have been extended beyond next month.

"Any support for jobs and key industries during this unprecedented global pandemic is to be welcomed," he said.

"However, the chancellor's measures are akin to using a plaster to cover a gaping wound.

"Our members in the commercial sector, aviation and culture are already being threatened with hundreds of redundancies, as employers seek to capitalise on the economic fallout from Covid-19."

Transport Salaried Staffs Association (TSSA) leader Manuel Cortes said: "Better late than never, but the government's indecision has already seen jobs lost in droves and caused huge needless anxiety among millions of workers.

"The chancellor said they will target support at 'firms who need it the most'.

"That must be fine-tuned so that the jobs of our members in the travel trade are saved and high-street travel shops don't become a thing of the past."

• A new Jobs Support Scheme will be launched for employees working at least a third of their normal hours, who are being paid for that as normal. The government and employers will jointly increase their wages to cover two-thirds of their lost pay and the employee will keep their job
• All small and medium-sized businesses are eligible, but larger businesses must show their turnover has fallen during the crisis. Employers can use it even if they have not previous used the furlough scheme it replaces
• It will run for six months from November
• The existing grant for self-employed people is being extended on similar terms to the Jobs Support Scheme
• A “pay as you grow” scheme was announced for businesses, allowing them to extend their bounce back loans from six to 10 years, reducing their payments
• Businesses can also move to interest-only payments or suspend repayments for six months if they are "in real trouble". Credit ratings will be unaffected
• The government guarantee on Coronavirus Business Interruption Loans will be extended to 10 years and a new successor loan guarantee programme will be announced in January
• The temporary reduction of VAT from 20% to 5% for some sectors will remain in place until 31 March 2021

Image source, HM Treasury

If an employee works reduced hours the employer pays for that. And in addition, the employer and government pay one-third of the lost pay each (up to the cap).

So for someone on £2,000 a month working half their hours, they’d get £1,000 normal pay plus £333 extra from their employer and £333 from the government.

The employer can also claim the job retention bonus - as long as they qualify for that.

Sunak said businesses will not be able to issue redundancy notices to employees on the Job Support Scheme - and there will be restrictions on capital distributions to shareholders.

The chancellor told the Commons: "There will be restrictions on larger companies, in terms of capital distributions to shareholders while they are in receipt of money for their workers on this scheme.

"And indeed they will not be able to make redundancy notices to those workers who are on this scheme throughout its duration."

Responding to Chancellor Rishi Sunak's statement, Shadow Chancellor Anneliese Dodds says she called for targeted wage support 40 times and was "rebuffed" 20 times by the government.

She says it is a "relief" that the government has "U-turned", but says the delay in introducing the new scheme will have impacted on businesses' confidence.

The deadline for redundancy consultations for large firms before the end of the furlough scheme came and went last week, she says, "without a word from this government".