From next month, only businesses that are legally required to close completely to the public will be able to furlough employees. Those employees will receive two-thirds of their wages, rather than a previous 80 per cent.
employing staff part-time will receive much more limited support for their wage bills.
Sunak is expected to unveil additional measures to help struggling firms with one possibility being to extend the eligibility for business grants, The Guardian reported on Wednesday. The Financial Times said there would be more support for the hospitality sector.
The government has clashed with regional politicians in northwest England over the scale of aid available to businesses and workers.
measures in Britain do not require businesses to close outright but significantly restrict trade, for example by barring pubs and restaurants from serving groups of people who do not live in the same household, or opening after 10 p.m.
Britain's finance ministry was not immediately able to comment on the nature of the upcoming 'Economy Update' which the government announced on Wednesday.
Previous updates have come alongside the announcement of more generous support.
Facing demands for more assistance from lawmakers on Tuesday, junior finance minister Jesse Norman said the government had put in place "an evolving and comprehensive programme of support for business".
British government borrowing is on course to reach its highest since World War Two this financial year.
Sunak said earlier on Wednesday that supporting jobs remained the government's priority, but he would need to take steps to ensure the public finances remained sustainable once economic recovery was under way.
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